Innovation, Efficiency, Simplicity. | 2015 Commercial Cards Conference | May 18 - 20, 2015 Presented by: Rodrigo Sanchez, North America Commercial Cards B2B Product Manager Treasury and Trade Solutions | Citi Commercial Cards Citi ® Virtual Card: Enabling Successful Payables Programs - Breaking Down the Barriers
26
Embed
Treasury and Trade Solutions | Citi Commercial · PDF file6 Innovation, Efficiency, Simplicity. B2B Check Payments are Falling Check use for B2B payments is declining rapidly in the
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Payment Digitisation Default VCA 30 30 60 ↑ Medium Check Med
Payment Term Extension Early Payment VCA 60* 0 30 - High Check, EFT High
Expedite Payments Early Payment VCA 30 0 35 - High Check, EFT High
Benefits for the Buyer
Use card float to
gain additional
working capital
Benefits for Suppliers
Maintain DPO while
offering suppliers early
payment
Allow term extension
terms without
damaging relationships
23
Innovation, Efficiency, Simplicity.
Citi Supplier Enablement Services: Proven Success
To date, Citi has enrolled more than 40% of targeted suppliers which has resulted in converting
over 30% of spend across both check and electronic payments to a B2B Cards solution
Check
Annual Volume Spend Adoption Merchant Adoption
<$500K 37% 40%
<$1MM 35% 39%
<$2MM 28% 39%
Total 28% 39%
<$5MM 24% 38%
$5MM+ 14% 13%
ACH
Annual Volume Spend Adoption Merchant Adoption
<$500K 38% 51%
<$1MM 33% 49%
<$2MM 27% 47%
Total 27% 47%
<$5MM 22% 46%
$5MM+ 11% 8%
Incentives offered have a material impact on card
conversion rates
– Spend adoption impacted by proposed cash
flow benefit
– The stronger the incentive the more successful a
campaign will be in enrolling higher spend merchants
Traditional
Target Zone
Traditional
Target Zone
$136K
$82K
$155K $178K
$227K $209K
16% 16%
33%
23% 29%
20%
0 10 20 43 60 65
Cash Flow Benefit to Supplier (No. of Days)
Avg. Annual Spend Enrolled % Suppliers Enrolled
Adoption by Payment Method
Success By Incentive
24
Innovation, Efficiency, Simplicity.
Implementation Support Model
A dedicated and experienced Citi implementation team works closely with our clients’
corresponding team to ensure program requirements are met.
Project Manager
Technical Specialists
Supplier Enablement
Manager
Project Management
Documentation
Technical Expertise
Specialists providing deep expertise on
system integration, file delivery, data and
reporting needs
Manage supplier enablement activities
end-to-end
Report campaign success and
opportunities for expansion
Implementation Manager
Central Point of Contact for coordinating
implementations
“One-stop contact” for best practices and
client questions Experience working with various ERP
systems
Clients represent some of the most complex card implementations in the industry
Citi brings a track record of integrating at every level of requirement for its implementation services based on best practices in project management
Additional Support on ERP integration
Support in development of VCA files
Custom ERP coding and reporting
Expertise in SA, Oracle and Microsoft ERP systems
Consulting service offered on an ad-hoc, as needed basis
Acceleration of Virtual Card implement
Citi’s Experience with Complex Implementations
ERP Integration Support
25
Innovation, Efficiency, Simplicity.
Sample Implementation Timeline
Citi will customize a project plan tailored to each client’s specific needs
Month 1 Month 2 Month 3 Month 4 Month 5
Product kickoff
Complete all documentation
Supplier enrollment campaign
Open accounts
Client setup
Validation, testing
Client training
Production ready/Go Live
Task
IR S C irc u la r 2 3 0 D is c lo s u re : C it ig ro u p In c . a n d its a f f i lia te s d o n o t p ro v id e ta x o r le g a l a d v ic e . A n y d is c u s s io n o f ta x m a tte rs in th e s e m a te r ia ls (i) is n o t in te n d e d o r w r it te n to b e u s e d , a n d c a n n o t b e u s e d o r
re l ie d u p o n , b y y o u fo r th e p u r p o s e o f a v o id in g a n y ta x p e n a lt ie s a n d ( ii) m a y h a v e b e e n w r itte n in c o n n e c t io n w ith th e " p ro m o tio n o r m a rk e tin g " o f a n y tra n s a c tio n c o n te m p la te d h e re b y (" T ra n s a c tio n " ) .
A c c o rd in g ly , y o u s h o u ld s e e k a d v ic e b a s e d o n y o u r p a r tic u la r c irc u m s ta n c e s fro m a n in d e p e n d e n t ta x a d v is o r .
A n y te rm s s e t fo r th h e re in a re in te n d e d fo r d is c u s s io n p u rp o s e s o n ly a n d a re s u b je c t to th e fin a l te rm s a s s e t fo r th in s e p a ra te d e fin it iv e w rit te n a g re e m e n ts . T h is p re s e n ta tio n is n o t a c o m m itm e n t o r firm o f fe r a n d d o e s n o t
o b lig a te u s to e n te r in to s u c h a c o m m itm e n t , n o r a re w e a c tin g a s a fid u c ia r y to yo u . B y a c c e p tin g th is p re s e n ta tio n , s u b je c t to a p p lic a b le la w o r re g u la tio n , yo u a g re e to k e e p c o n fid e n tia l th e in fo rm a tio n c o n ta in e d h e re in a n d
th e e x is te n c e o f a n d p ro p o s e d te rm s fo r a n y T ra n s a c tio n .
W e a re re q u ire d to o b ta in , v e r ify a n d re c o rd c e r ta in in fo rm a tio n th a t id e n tif ie s e a c h e n ti ty th a t e n te rs in to a fo rm a l b u s in e s s re la tio n s h ip w ith u s . W e w ill a s k fo r yo u r c o m p le te n a m e , s t re e t a d d re s s , a n d ta x p a ye r ID n u m b e r .
W e m a y a ls o re q u e s t c o rp o ra te fo rm a tio n d o c u m e n ts , o r o th e r fo rm s o f id e n tif ic a tio n , to v e r ify in fo rm a tio n p ro v id e d .
[TRADEMARK SIGNOFF: add the appropriate signoff for the relevant legal vehicle]
and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request. 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