E-Business Transformation at Citibank Transaction & Trade Solutions

Executive Summary

In the following report, I will analysis the current situation of the banking industry. Corporate treasurers need a well integrated platform which allows provide a multi-banking, real time cash management tools. Besides that, the market gravity has been shifted from developed countries to developing countries. These changes significantly changed the business model of banking industry to become digitalized. In order to cope with the changes, Citi setup two innovation centers and a ventures capital both focus on technologies which can be used. By put more focus in Asia market with its tradition as a early adopter and fast responder, Citi could maintain its leadership by becoming the first universal digital bank.

Background

After financial crisis in 2008, the financial market changed dramatically. Corporations were harder to get credit from banks. Besides that, corporations change their focus from developed to developing markets. Corporate treasures seek for comprehensive cash management solutions. It changed the relationship between banks and corporations which related to efficiency, risk management and connectivity.

Government regulations force banks to separate their business into different holdings, and the Dodd-Frank act limits banks in the investment and securities trading business, makes trade and transactions services regained importance. Citi Bank as a major US universal bank, what has it done to adopt the changes, and what should they do in the future?

What corporations needs?

Most of the multinational corporations use Enterprise Resource Planning software (EPR) and Treasury Management Systems (TMS) in order to reduce transaction costs and labor, and improve efficiency. Corporate treasurers need real time data on their EPR and TMS to having full visibility and operability of bank account balances and relative reporting. However, the data was difficult to integrate as there is no common format standard among popular EPR and TMS...