Setting the Scene: Innovating to Shape the Client Experience€¦ · Innovating to Shape the Client Experience Munir Nanji Sales Head, Asia Pacific Treasury and Trade Solutions, Citi.

Setting the Scene: Innovating to Shape the Client Experience

Munir NanjiSales Head, Asia PacificTreasury and Trade Solutions, Citi

2

In the long history of humankind, those who learned to collaborate and improvise most effectively have prevailed.

Charles Darwin

3

Major New Regulation passed every 15‐20 years 

1950 ‐ Office of Foreign Asset Control1970 ‐ Bank Secrecy Act1986 ‐ Money Laundering Control Act

Secular Trends Shaping the World

Primary Sources: EIU, Roland Berger, United Nations Statistics, WHO Statistics, Forrester Research, Citi Analysis

Globalization

Urbanization

Digitization

Past (1990) Present Future

USA JPNDEU

USA CHN JPNCHN USA IND

17 % 26 % 33 %EM Trade as % Global Trade Exports share of GDP Exports share of GDP

Largest world economies Largest world economies Largest world economies

43% world population in cities 53% world population in cities 70% world population in cities (2050)

9% world population > 60 years old 11% world population > 60 years old 22% world population > 60 years old (2050)

Mobile broadband subscriptions: None Mobile broadband subscriptions: 1.5bn Mobile broadband subscriptions: 6.5bn (2018)

Internet users: NominalWeb browser introduced in 1992

Internet users: 2.7bn39% global penetration

Internet users: 3.6bn (2017)50% global penetration

0 1.5bn 6.5bn

RegulationIncreasingly complex banking rules passed at an escalating pace in the past 

13 years, with indications that pace will continue…Since 2000 – FACTA, US Patriot Act, SEPA, USAPA Certificate Benchmarking Dodd‐Frank Act, Durbin Amendment, Payment Services Directive II, Recovery &Resolution Planning, Basel III,…

4

Trends are Shifting “Quantum” & “Direction” of Flows

Source: International Monetary Fund , McKinsey Global Capital Markets, and TTS analysis(1) Includes total value of cross-border investments in equity and debt securities, lending and deposits, and foreign direct investment

Domestic financial assets

0.5-1%1-5%

5-10%

10%+

Arrow width shows value of cross-border investments between regions1

Arrow color shows flow opportunity

Traditional flows

Growing opportunity flows

Australia,New Zealand, and

Canada $4.0T

North America$65.0T Japan

$26.8T

WesternEurope$53.4T

UK$9.7T

Latin America$6.6T

EmergingAsia

$24.5T

Russia,Eastern Europe

$4.3T

Hong Kong,Singapore,

Taiwan$4.5T

Middle East, Rest of World

$7.9T

Cross-Border Investment Flows

• New corridors of flows• Rise of Emerging Markets • Globally integrated marketplace

TTS is a facilitating new and emerging corridors

Through Solutions and Capabilities• Launched RMB cash and trade services

• Global clearing platforms for consistency

• Mobile payment/collection capabilities

• Supply Chain Finance for local currency flows

Through Local Resources• Extending network management capability

• Re-engineered Implementation, Client Service & Account Management model

• Customised capabilities to local standards

Through Technical Solutions

• Implemented Flows Solutioning Framework

• Emerging Markets Resource Center Portal

• Partnership w/ FXLM for x-currency payments

5

Macro-Trends Digital Strategy

Digitization - TTS Strategy

Optimize business performance for Citi

and clients through rich data and analytics

Expand channels and capture

new flows

Extend core digital platforms, products, and services

Deliver Platforms and products that

enable channel & device expansion, and reduced cycle

times

Strategic Priorities

• Enhance end-to-end client experience

• Deliver greater value to our clients

• Leverage our global scale to digitize financial flows

• Drive competitive differentiation

We are continuing to invest in innovation that creates value for our clients

Macro Economy

Changing direction of flows & markets uncertainties

Regulation

Transparency requirements driven by regulations

Competition

Banks and non-traditional competitors are expanding

into transaction banking

Globalization

Automation, centralization of information across ecosystems

Treasury and Trade Solutions

CitiDirect BESM Mobile

Provides clients with a user-centric online experience while enabling access to a broad range of Citi solutions.

A value-add solution that allows clients to initiate, authorize and release payments and accounts from virtually anywhere through their Internet-enabled mobile devices.

Mobile Check Deposit

A mobile application that allows a geographically disbursed agent network to collect and process checks from consumers at the time of collection

eBAMA web-based application for administration (opening, signatory management and maintenance) of Citi accounts. It enables self service through online forms and documentary requirements, electronic tracking of requests, and account reporting.

Receivables Vision/Payment Analytics

A set of applications that increase transparency, develop intelligence and increase efficiency in operations in order to optimize working capital

CitiDirect BESM Online

CitiConnectA single integrated channel providing greater choice, flexibility, and security for integration with our clients’ backend systems while providing value-add services and solutions.

6

Our innovation priorities are focused on addressing clients needs and to scale our digital products and services to provide institutional clients the ability to more efficiently run their businesses globally.

Increasing the Range of Digital Capabilities

7

Innovation: Ideation to ExecutionWe are creating value and growth through innovation

…to get breakthrough solutions here

Increase the volume of interesting ideas …

… the velocity and effectiveness of experimentation …

… the funding for validated proofs-of-concept …

Deliver Innovation Portfolios1

Client Showcase & Solutions Center2

Regional Innovation Center of Excellence3

Execution of the Innovation Process4

Citi Innovation Labs: Dublin, Singapore & MiamiA network of regional center's tasked with executing Citi’s innovation agenda by working with our customers and by bringing them into the heart of how and why we build new products and services

8

Bringing Innovation to our Clients

• Through a prototype, 20+ client interviews informed key design decisions:

• Launched in September 2013, CitiDirect BE Tablet is live in 34 countries and 5 languages and has processed over $1 Billion in total transaction value since launch

CitiDirect BEsm Tablet

Global Flows Analytics

Mining Citi’s global transaction flow data at scale to yield actionable intelligence to enable clients to visualize their supply chains and uncover valuable insights

• Visualization of inter company payments and flows from buyers and flows to suppliers

• Prioritization of buyers and suppliers by risk rating

• Identify supply chain optimization opportunities

Interactive Client Solutions

• Liquidity solutioning• Benchmarking using a lite version of Citi Treasury Diagnostics• Visualization of our collections network and Payments & Receivables capabilities

Our clients helped us design a better model of the first corporate banking tablet application providing financial analytics & transaction functionality.

9

Enhancing Client Experience We are listening to our clients feedback and are focusing on key initiatives with clear deliverables to be more responsive and enhance our clients’ experience.

Focus Areas to Improve Client Experience

Documentation Content & Process

Ease of Doing Businessacross the Network Onboarding Service Responsiveness

Self-Service

Automation

Product Enhancements

Increase transparency of clients’ end-to-end touch points across Citi network

Single global document repository accessible globally

eBAM enabled in all countries & documentation dematerialised

eFlow implemented globally and integrated with other systems

Improved time to implement

Custom Document Generator

Single Document Issuance operating model for account opening and product documentation

Standard certification requirements and clear distinction between AML and Account Opening requirements

Guidance notes and purpose for each local and global documents

Re-use documentation on record leveraging intelligent search

Faster response time & end-to-end ownership on inquiries

Deeper knowledge of client and language capabilities

Consolidated tracking of critical clients between Client Operations and Account Services

Key metrics set for each functional area with emphasis on client experience/ responsiveness and network performance

Better aligned functions to ensure clients are experiencing more seamless service, streamlined decision making and simplified processes Redesigning processes to reduce cycle time and client contact points Leveraging technology to standardize document repositories, automating process workflows and client self-service capabilities

10

Alone we can do so little; Together we can do so much

Helen Keller

Treasury and Trade Solutions

Citi believes that sustainability is good business practice. We work closely with our clients, peer financial institutions, NGOs and other partners to finance solutions to climate change, develop industry standards, reduce our own environmentalfootprint, and engage with stakeholders to advance shared learning and solutions. Highlights of Citi’s unique role in promoting sustainability include: (a) releasing in 2007 a Climate Change Position Statement, the first US financial institution to doso; (b) targeting $50 billion over 10 years to address global climate change: includes significant increases in investment and financing of renewable energy, clean technology, and other carbon-emission reduction activities; (c) committing to anabsolute reduction in GHG emissions of all Citi owned and leased properties around the world by 10% by 2011; (d) purchasing more than 234,000 MWh of carbon neutral power for our operations over the last three years; (e) establishing in2008 the Carbon Principles; a framework for banks and their U.S. power clients to evaluate and address carbon risks in the financing of electric power projects; (f) producing equity research related to climate issues that helps to inform investorson risks and opportunities associated with the issue; and (g) engaging with a broad range of stakeholders on the issue of climate change to help advance understanding and solutions.

Citi works with its clients in greenhouse gas intensive industries to evaluate emerging risks from climate change and, where appropriate, to mitigate those risks.

efficiency, renewable energy and mitigation

[TRADEMARK SIGNOFF: add the appropriate signoff for the relevant legal vehicle]

© 2014 Citigroup Global Markets Inc. Member SIPC. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.

© 2014 Citigroup Global Markets Limited. Authorized and regulated by the Financial Services Authority. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used andregistered throughout the world.

© 2014 Citibank, N.A. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.

© 2014 Citigroup Inc. All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.

© 2014 [Name of Legal Vehicle] [Name of regulatory body.] All rights reserved. Citi and Citi and Arc Design are trademarks and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.

IRS Circular 230 Disclosure: Citigroup Inc. and its affiliates do not provide tax or legal advice. Any discussion of tax matters in these materials (i) is not intended or written to be used, and cannot be used or relied upon, by you for the purpose of avoid ing any tax penalties and (ii) may have been written in connection with the "promotion or marketing" of any transaction contemplated hereby ("Transaction"). Accordingly, you shou ld seek advice based on your particular circumstances from an independent tax advisor.

In any instance where distribution of this communication is subject to the rules of th e US Commodity Futures Trading Commission (“CFTC”), this communication constitutes an invitation to consider entering into a derivatives transaction under U .S. CFTC Regulations §§ 1.71 and 23.605, where applicable, but is not a binding offer to buy/sell any financial instrument.

Any terms set forth herein are intended for discussion purposes only and are subject to the final terms as set forth in separate defini tive wri tten agreements. This presentation is not a commitment to lend, syndicate a financing, underwrite or purchase securities, or commit capital nor does i t obligate us to enter into such a commitment, nor are we acting as a fiduciary to you. By accepting this presentation, subject to applicable law or regulation, you agree to k eep confidential the information contained herein and the existence of and proposed terms for any Transaction.

Prior to entering into any Transaction, you should determine, without reliance upon us or our affil iates, the economic risks and merits (and independently determine that you are able to assume these risks) as well as the legal, tax and accounting characterizations and consequences of any such Transaction. In this regard, by accepting this presentation, you acknowledge that (a) we are not in the business of providing (and you are not relying on us for) legal, tax or accounting advice, (b) there may be legal, tax or accounting risks associated with any Transaction, (c) you should receive (and rely on) separate and qualified legal, tax and accounting advice and (d) you should apprise senior management in your organization as to such legal, tax and accounting advice (and any r isks associated with any Transaction) and our disclaimer as to these matters. By acceptance of these materials, you and we hereby agree that from the commencement of discussions with respect to any Transaction, and notwithstanding any other provision in this presentation, we hereby confirm that no participant in any Transaction shal l be limited from disclosing the U .S. tax treatment or U.S. tax structure of such Transaction.

We are required to obtain, verify and record certain information that identifies each entity that enters into a formal business relationship with us. We will ask for your complete name, street address, and taxpayer ID number. We may also request corporate formation documents, or other forms of identification, to verify information provided.

Any prices or levels contained herein are preliminary and indicative only and do not represent bids or offers. T hese indications are provided solely for your information and consideration, are subject to change at any time without notice and are not intended as a sol icitation with respect to the purchase or sale of any instrument. The information contained in this presentation may include results of analyses from a quantitative model which represent potential future events that may or may not be realized, and is not a complete analysis of every material fact representing any product. Any estimates included herein constitute our judgment as of the date hereof and are subject to change without any notice. We and/or our affil iates may make a market in these instruments for our cus tomers and for our own account. Accordingly, we may have a position in any such instrument at any time.

Although this material may contain publicly avai lable information about Citi corporate bond research, fixed income strategy or economic and market analysis, Citi pol icy (i ) prohibits employees from offering, directly or indirec tly, a favorable or negative research opinion or offer ing to change an opinion as consideration or inducement for the receipt of business or for compensation; and ( ii) prohibits analysts from being compensated for specific recommendations or views contained in research reports. So as to reduce the potential for conflicts of interest, as well as to reduce any appearance of conflicts of interest, Citi has enacted policies and procedures designed to lim it communications between its investment banking and research personnel to specifically prescribed circumstances.