Citi has launched a new cross-border, business-to-business payments platform that aims to “digitise” the transaction process and includes FX capabilities.
The platform, called Citi Global Collect, is a collaboration between the bank’s treasury and trade solutions (TTS) and FX businesses, and is designed to make it easier for multinational clients to collect funds from overseas payers and apply cash faster.
In a release issued today, Citi explains that in the current environment institutions deal with multiple service providers to collect their payments by presenting invoices, collecting funds cross-border and reconciling payments – creating an inefficient and disjointed experience. Additionally, the bank says that current collection processes are primarily manual and paper-based, creating more operational inefficiency.
To address this challenge, Citi combined its local payment offerings, account structures and FX capabilities with a digital invoicing platform from HighRadius Corporation, a Citi Ventures portfolio company. This fully integrated platform connects Citi’s clients to their international payers across key markets in all regions. By automating the entire workflow – including international billing, automated payment, currency selection and reconciliation – it potentially gives multinational clients greater visibility and control over cross-border receipts and their global cash position.
“In today’s digital economy, clients must scale quickly into new markets to remain competitive. At Citi, we are arming our clients with the technology to enable expansion and sustain growth by automating key aspects of their core operations and improving the end-to-end user experience,” says Manish Kohli, global head, payments and receivables, at Citi.
Citi Global Collect leverages the bank’s international footprint, alongside its FX and payments capabilities, to create a more frictionless payment experience for both billers and payers, the bank says. By embedding FX into the invoicing process, institutional clients have access to multi-currency pricing and can price goods and services in the preferred currency of their international payers, while still receiving the full amount in their functional currency with guaranteed rates.
“With the rollout of Citi Global Collect, Citi continues to prove that we are able to leverage our greatest assets to create competitive technology solutions that meet our clients’ international business needs and allow them to manage associated currency risks,” says Flavio Figueiredo, global head, rates and currencies corporate sales, at Citi.