Global Transaction Services Kathy Lin GTS Taiwan Head April 13, 2005 Copyright © 2003. Citibank,...

Global Transaction Services

Kathy Lin

GTS Taiwan Head

April 13, 2005

Copyright © 2003. Citibank, N.A. All rights reserved. CITIGROUP and the Umbrella Device are trademarks and service marks of Citicorp and its affiliates and are used and registered throughout the world.

Citigroup® Global Transaction Services

2

Agenda

Citigroup Global Transaction Services Overview

Experience Sharing for Transaction Banking Management

Citigroup Global Transaction Services Overview

4

To be the world’s leading provider of Cash Management, Trade, and Securities Services to enable our clients to manage their treasury needs, and financial and commercial flows and assets.

Global Transaction Service (GTS) Mission Statement

5

CitigroupClient

Ad

vis

ory

Equity

Stru

ctu

red

C

orp

ora

te

Fin

an

ce

Risk

Managem

entFixe

d In

com

e

Secur

ities

TransactionServices

Corporate

Client Group

Deriv

ativ

es

GlobalTransaction Services

Capital Markets and Banking

Cards

Consumer Finance

Retail Banking

Smith Barney

Global Corporate

and Investmen

t Bank

GlobalConsumer

Private Client

Services

GlobalInvestmentManageme

nt

Asset Manageme

nt

Private Bank

Life Insurance

and Annuities

Office of the Chairman

GTS is An Integral part of the GCIB

GTS’ Role in Citigroup

Central to Citigroup’s Customer Strategy

Superior Products & Services

Global Platform

Product Depth

Coordinated Relationship Management

6

Products /Customere Group

GRB FI TTLC ELC Product Revenue Total

Global Fixed Income A C B A + B + C

Global Equities F D E D + E + F

Investment Banking G G

EM Local Finance H K I J H + I + J + K

Regional Sales + Trading L O M N L + M + N + O

GTS P S Q R P + Q + R + S

Customer Revenue Total A + H + L + PC + F + K + O +

SB + D + G + I +

M + QE + J + N + R

A + B + C + D + E + F + G + H + I +J + K L + M + N + O + P + Q + R + S

GTS’s Role in Global Corporate & Investment Banking

Total GCIB Revenue

Customer Relationship Management

Pro

du

ct Dev

elop

men

t

The Business under GTS Coverage

7

PRODUCTS FUNCTIONS

Securities Services

Cash Management

Trade

CFOLiability & Risk Mgt

Regional Heads

LATAM

ASIA

EUROPE

CEEMEA

CLIENT

Financial Institutions

Corporate

Relationship Mgt.Sales & Marketing

Credit

GTS Coverage Model

These services are distinguished by:

-A global footprint and platform

-Unparalleled breadth and flexibility

-The industry’s most extensive delivery infrastructure

8

YTD 2003 revenuesNote: GTS present includes countries where GTS does not have physical presence but generates revenues

GTS PresentGTS Not Present

Latin America & Mexico

Employees = 2,249

Asia-PacificEmployees = 3,514

Global TotalEmployees = 17, 132

Global TotalEmployees = 17, 132

North AmericaEmployees = 4,184

EMEAEmployees = 7,185

GTS Geographic Footprint

Global Transaction Services services customers in over 100 countries, and has over 17,000 employees

9

2004 GTS FY Revenue - Total of $ 3,816 MM

North America$846MM

North America$846MM Japan

$73MMJapan$73MM

Asia Pacific$967MM

Asia Pacific$967MMLatin America

$430 MMLatin America

$430 MM

Europe$800MMEurope$800MM

CEEMEA$700MMCEEMEA$700MM

GTS Geographic Footprint

GTS Taiwan is ranked 7th among GTS countries from the view of 2004 Net Income

10

GTS Taiwan Revenue Source

Deposit Balance

Customer Rate

1.00%

Funds Flow

Pool Rate

2.75%

Market Base Rate

3.00%

Financial Financial MarketMarket

TreasuryTreasuryGTSGTS

2. NRFF – Net Revenue From Funds

Spread = Pool rate – Customer Rate

NRFF = Deposit Balance x Spread

Corporate Corporate CustomersCustomers

Deposit Balance

1. Transaction Fee

GTS Experience Sharing

12

After SalesService

After SalesService

Implementation & Delivery


SalesProcess

SalesProcess

Product Development

Product Development

• Cash PM

• Trade PM

• GSS PM

• Cash Sales

• Trade Sales

• GSS Sales

• GRB RM

• FI RM

• FI Sales

• Siebel CRM

• EB Team

• CitiDirect

• CitiService

• IVR

• Corporate Potal

Platform

manpower


13

After SalesService

After SalesService



SalesProcess

SalesProcess

Product Development

Product Development

• Cash PM

• Trade PM

• GSS PM

• Cash Sales

• Trade Sales

• GSS Sales

• GRB RM

• FI RM

• FI Sales

• Siebel CRM

• EB Team

• CitiDirect

• CitiService

• IVR

• Corporate Portal

Platform

manpower


14

Value-added Solution Provider

Participation in commercial and financial Funds Flow Proactively

Innovation Success Transfer

Product Offerings to Follow Economic Evolution, Local Deregulation and Technology Transformation

Seek good growth not bad growth (both revenue and profit margin) in a sustainable way

GTS Experience SharingProduct Development Strategy

15

GTS BusinessGTS Business

TradeTradeCashCash GSSGSS

RECEIVEGOODS

MAKEPAYMENT

RECEIVEINVOICE

MAKEPURCHASE

RECONCILEACCOUNT

INVOICE RENDITION

DELIVERY OF GOODS

COLLECT PAYMENT CASH

TAKE PURCHASE ORDERSeller

Buyer

Vendor Financing in China

Collect Payment

Collect Payment

Inward Remittance

X-border OR

PayLink

Citiconnect SCM

Import FinancingCP / Guarantee

ECB (Agency & Trust)

DR

CASHCASH

ReceiveInvoice

ReceiveInvoice

Make PaymentMake

Payment

Export NegotiationExport FinancingAR Purchase(Insurance)

( ) in discussion

Int’l Purchase Cash & Trade

Domestic Sales

Int’l SalesCash & Trade

DomesticPurchase


16

Blue - Active participation in flows or pools; Red - Plans to focus on this flow or poolGreen - Launched since 2002

Suppliers

Pools

Flows

ABROAD

Participation in Cash Management Funds Flow - Taiwan

Shares

InsuranceCompany

BankAccounts

OtherInvest-ments

Individuals

ConsumptionPersonal Fixed Assets& Debt Payments

. Utility Bills

. Credit Cards

. Cash Expenses

. EFTs

. Mortgage

. Car

Savings

Dividends

PayLink

Dividend

Taxes

pensionssocialpayments

Paylink Custom Tax Payment

CollectionsSpeedCollect &

Wholesale Lockbox

Payment

sPayLink

Compensation

IPOs

IPOs

Capita

l

ForeignWorkers

Customers

Company B

Government

Company A

CorporateBalances

Foreign workersBank A/Csat Home

AR Financing

Ins. PremiumM

ass Collection

Netw

ork Building)

X-border payment for Foreign Workers

Remitter’s Relatives in PRC

PRC Remittance

eBillingCitiC

onnect SCM

Trade

X-border Transfer

ACH PaymentC

itiC

on

ne

ct

FT

Liq

uid

ity

M

gm

t S

upplier

Financing

Tax

ACH Collection

17

GTS Experience SharingInnovation Success Transfer – eBilling

eBilling is a a seller-centric internet solution for electronic bill presentment and payment, Integrated with WLB to provide total solution of account receivable service

3

Malaysia

12

Sourcing from vendors in China &

Taiwan

Global Supplier Chain

GTS Experience SharingEconomic Evolution

19

CitibankNetworks

ATMsATMs

Post Office Counter Post Office Counter / Direct Debit/ Direct Debit

CustomerCustomer

Local BankLocal BankIBRS / ACHIBRS / ACH

WLB

PayerPayer

Convenience StoresConvenience Stores

ConsolidatedPayment Info..

Open Invoice FileOpen Invoice File

ChecksChecks

Collection Channels

GTS Experience SharingTechnology Transformation: Integrated Mass Collection Service

20

Implement a world leading web-based Customer Relationship Management system

developed by Siebel to track sales performance

Define individual sales goal to ensure that all sales goals surpass the country

product revenue

Set benchmark for # of customer calls per week per sales

Publish “top 10 deals win and loss” to increase peer competition and drive sales momentum

Launch selling campaign to accelerate revenue materialization

GTS Experience SharingRobust Sales Process

21

GTS Experience SharingRobust Sales Process: Siebel CRM System

Next

22

Tar

getin

g &

P

lan

ning

Imp

lant

atio

nM

ISF

irm P

ipel

ine

Sales Cycle Proability % Comment01 Target Prospect 0-10% Very early days. Maintain a low prob.

02 Needs Analysis 10-40% Prob could be as high as 40% if we have the relationship, industry contacts, customer contacts, product suite etc

03 Solution Fit / Deal Review 20-45%We are assessing our ability to match the customers key requirements with our product, operational and country capability. We could at this stage obtain an increased probability on this basis

04 Deal Review Complete / Proposal Sent 30-50% A proposal 'out there' with a sound basis of customer needs analysis could put us in a situation to have as much as a 50% chance

05 Negotiation Up to 80%

By negotiations, the customer now has several providers responses and there could be negative assessment to deal with OR position of strength to capitalise. This status could have quite a discrepancy in prob. HOWEVER, since the customer is clearly fulfilling a tender for business it is likely that the prob will either be LOW or HIGH with little middle ground

06 Finalisation / Decision Up to 80%

Generally as per 05 albeit that there might be less customer dialogue. It is a chance however to increase probability by using the banking relationship to 'influence' the decision. Again the probability should be polemic - either high or low

07 Implementation Pending 100%

08 Active Implementation100%

During this stage deal products may be decommited by the customer. These deal products should be marked with a status of 'Decommitted' and the probability set to 0%

09 Implementation Complete 100%10 Deal Lost 0%11 Prospect which did not materialise 0%

12All other deals 3-6 marked for deletion due to error / duplication etc

0%

GTS Experience SharingRobust Sales Process: Sales Cycles

23

CitiDirect® Online Banking deliver international corporate and financial institutions the most

secure, efficient and real time banking services

CitiDirect® Online Banking were presented as World Best Internet Bank and World’s Best Corporate

Institutional Bank from Global Finance

CitiDirect ® Online Banking

24

應收帳款管理解應收帳款管理解決方案決方案

應付帳款管理解應付帳款管理解決方案決方案

資金調度解資金調度解決方案決方案

END-to-ENDEND-to-END

Account Receivable Account Receivable

ManagementManagement

LiquidityLiquidityManagementManagement

END-to-ENDEND-to-END

Account Payable Account Payable

ManagementManagement

CustomerCustomer

CitiDirect ® Online Banking

25

6,000,000,000,000

4,000,000

140,000

26,000

100+

90

21

18

1

Total Transaction Value in USD

Total Transaction Volume

Total Active Users

Corporations Use

Currencies

Countries

Languages

Countries in Asia

Platform

CitiDirect ® Online Banking Today

26

Internet AdvantageAccess Account Information at everywhere and any time

Real-time Account Information

Enhanced Internal Operation Efficiency Easy to monitor transaction process and status

Remove Cross boarder/region barries

Simple System Installation and Automatic Update Download and install directly from website

System Automatic Update

Easier to UseOnline Help and training

Safest Internet Banking

Why CitiDirect ?

27

Enterprise Internal Enterprise Internal EnvironmentEnvironment InternetInternet

Citibank Citibank Backend SystemBackend System

DMZDMZFirewallFirewall

CitiDirectCitiDirectServerServer

www.citidirect.com

Internet Service Internet Service ProviderProvider

ISPISPADSL or Dial-upADSL or Dial-up

FirewallFirewallEnterprise IntranetEnterprise IntranetTaipeiTaipei

FirewallFirewallEnterprise Intranet Enterprise Intranet HongkongHongkong

Connect to the Internet Thought Enterprise LAN/WAN to CitiDirect

Thought ADSL or Dial up to CitiDirect

ModemModem

Internet Platform

28

The One-for-All Payment Platform Local currency payment Local Wire Transfer via FISC: PayLink Vendor and PayLink IBRS. Local Check Payment: PayLink Check and PayLink PDC.

Foreign currencies payment Cross boarder Fund Transfer for foreign currencies wire transfer. WorldLink Factory to issue foreign currencies checks.

Book Transfer Internal fund transfer within Citibank Taipei’s accounts.

Multiple Methods of Payment data input: Manual Input field by field. Pre-format Input from the Predefined library. File Import from your ERP system

All Payment Services on CitiDirect

29

Advanced Security Mechanism

Using Dynamic Password for user authentication

SSL(Secure Sockets Layer) version 3

128 bit session level Encryption

Audit Report for Security Manager to monitor user activities

Firewall using DMZ mechanism

24hr Dual Systems Backup

30

Payment authorization flow can be up to 9 * 9 9 each level can setup to 9 authorizers

To meets all levels and customers’ requirement.

Your transactions’ approvals criteria can be setting by : By different payment products (PayLink Check, PayLink Vender…)

By different payment methods (Manual input, Predefined input, File import)

By different amount range

By different company’s name

By different accounts

Or you can mixed above criteria


31

Security Mechanism CitiDirect Other Local banks *

User Sign-on Dynamic Password, hard to crack

Static Password, Easy to crack & stole

Digital Signature Used & Approved by MOF

Yes Yes, but use the Local CA not global standard.

SSL 128 bit V3 128 bit V3

Firewall using DMZ Yes ?

Authorization flow maximum to 9*9

Yes ??

Using S/MIME to encrypt Mailed Report

Yes ???

Anti-Hacker Certificate Yes ????

Audit Report Yes ????

24Hrs Dual System Online Backup Yes ?????


32

Was established In 1997

Provide One Single Contact Window & Right Answers Right Away

Expedite The Resolution To Meet/Exceed Customer’s Expectation

Inquiry about : Product Information Account Services Transaction Follow Up Investigation On Requests Bank Practices & Regulations

Product Coverage : Fund Transfer Account Information Paylink Check/Payroll Speed Collect Import/Export Foreign Exchange Loan Time Deposit Electronic Banking/Internet Banking Others …………...

As of 2003, CitiService inquiry scope covers 51 products about 800 events

GTS Experience SharingCustomer Services

33

Total Investment during 2002 ~ 2003 : NTD 35 millions (USD 1.2 millions)

Investment in Systems/Infrastructure

- Set up CTI (Computer Telephony Integration) System

- Implement Exceller Systerm

- Upgrade IVR (Interactive Voice Response) System

- Increase toll-free service line capacity from 24 lines to 72 lines

Investment in Manpower Resources & Training- Improve service with investment on sufficient and qualified manpower

- 3-month pre-job training and CSO qualification certification

- Provide weekly 2-hour training

Service Quality Certification

- Acquired ISO9001:2000 certificate in 2001 and became the first financial

institution call center with ISO certification in Taiwan.

Next

GTS Experience SharingInvestment On Customer Service

34

Monitor

headphone

A mirror to remind the CSO to keep smiling

To provide customers with the most swift services, every CSO has 2 PCs and a 21” CRT monitor

CitiService Officers’ Working Environment

35

Showing The: Keying Account No.

Choosing Language

Showing the Customer Name when keying Account/base#

Inquiry Item Thru IVR System

PIN Verification Status:Green: Verified.Red:Not Verified.

Dial “O” to go to Customer Service Representative.

028486 5028486008

TESCO STORES (TAIWAN) CO

PLATINUM

Introduction to CTI System : (Computer Telephony Integration)

36

Log System for Customer’s Inquiry/Request.

Thru this System, CSR can pass the cases to operation for further investigation.

Customer’s Profile Maintenance.

Customer’s Inquiry Track System. Including: 51 products/799 events.

Customer’s Inquiry History Maintenance.

Analysis Report Generation:

Showing Customer’s Behavior.

Providing the Special Service according to Customer’s behavior.

Reviewing Internal Process for Improvement.

Customer’s Profile

Records for Customer’s Each Inquiry

Introduction to EXCELLER System (Customer Profile Management)

37

72 Service Lines - Provide quick and easy access to our 24-hour phone inquiry service

High Customer Information Security - After selecting system language, customers have to input account / base number and pin number for identification; then system will transfer the call to designated Customer Service Officer.

Provide Useful Inquiry/Fax Functions :

* Account Statement Inquiry

* Indicative Exchange Rate

* Account Statement Fax

* Incoming/Outgoing Remittance Advice Fax

* Cash/ Trade Form Fax (16 Items)

Upgraded IVR System

38

Implement customer segmentation - Differentiate customer service based on revenue impact

(Platinum, Gold, Priority, regular and walk-in customers)

Strive for call reduction/ alternative channels offload to better utilize the resources- Launched Corporate Portal to offload the volume of calls

- Promote IVR/Internet banking/fax service

Conduct Citi-tour and service review to ensure customer satisfaction - 6 CitiTour and 23 onsite service reviews for key customers were done in 2003- Achieve 100% VOC in 2003

Support account / transaction management and cross-selling campaign - Pliot anchor calls for ELC

- FI bank volume promotion

- Walk-in LC advising customer cross-selling

GTS Experience SharingCustomer Services Directions

Next

39

Premium Service for only 25 Customers- The inquiries will be served by the designated Customer Service Officer (CSO)who are the most senior and professional

bankers

Proactive End-to-End Transaction Follow Up and Investigation- Designated CSO will familiarize with customer’s inquiries and transactional patterns to deliver better service quality, follow up

on investigation cases to ensure timely and accurate resolution, and help to expedite the overall process on urgent or special cases.

Continuous Customer Communication and Ensure Satisfaction- Perform regular analysis of customer inquiries and transactions to understand customer needs.- Conduct semi-annual customer survey to ensure customer satisfaction.- Periodical customer visit to facilitate mutual cooperation.

Key Performance Indicators Description Satandard Goal Platinum Goal

Service Level % of Calls answered w ithin 15 sec. (3 rings) > 85% > 90%

% of Calls Abandoned % of Calls hung up before answered by CSO < 3 % < 1.5%

Average Speed of Answer (Sec.) Average customer waiting time before call answered < 20 sec. < 15sec.

% of Inquiries Answered at Time of Call % of Inquiries answered on-line (quick kill ratio) > 76% > 80%

% of Resolved Investigations Timely % of Investigation case resolved w ithin standard operation time > 99% > 99.5%

% of Calls Answered by designated CSO % of Investigation case resolved w ithin standard operation time No Desiganted CSO > 85%

GTS Experience SharingDifferentiated customer service

40

Corporate internet portal is a web-based customer service channel enabling customers to retrieve real-time information of their accounts & Transactions

GTS Experience SharingCorporate Internet Portal Roll-Out

41

E-Statements & Advices Cash Foreign Exchange Loans Deposits Trade, Guarantees

Customization Outgoing/Incoming Remittance E-mail Alert

FX Watch List

User Profile Maintenance

Page View Customization

Other Useful Tools Transaction Forms Download

Citigroup Market Research

GTS Experience SharingHighlights of Portal Functionalities

42

Stages of ImplementationStages of Implementation

Internally Internally Focused:Focused:Achieved:

1997

- Tracking System- Pre-defined Standards- Quick Answers- Inquiries management- Root/ Cause Analysis

Customer Focused:Customer Focused:

- Full Product Coverage- Automation of Repetitive Inquiries- Segmentation- Value-Added Service for Top Tier Customers- Increased Capacity for Embedded Bank Strategy.

Benchmark Focused:Benchmark Focused:

- Pro-active approach- Internet based interface- Experts in Value-Added Services- Fully integrated as part of the Business System- Shortest Turnaround Time in the Market

Call ManagementCall Management

Process ManagementProcess Management

Database ManagementDatabase Management

Customer SatisfactionManagement

Customer SatisfactionManagement

Stage 1Stage 1

Stage 2Stage 2Stage 3Stage 3

Stage 4Stage 4

Achieved: 1998 Achieved: 1999 Achieved:2001Achieved: 1997

SSttaaggee

55

Service Service ManagementManagement


43

Objectives

- Improve Management of Customer Expectation, Customer Service Issue, and Customer Satisfaction

- Strengthen customer relationship and building loyalty

- Support relationship manager, Product & Sales group to grow business

- Quantify the the value of the service management program by linkage to revenue and cost reduction goal

Key Focuses

- Recognize the need for Customer segmentation and tiered service

- Accommodate key customer's service requirements

- Off load simple enquiry to IVR/internet banking to better utilize the resources

- Cross selling opportunities

- Improve service and reduce cost

Next Stage (Stage 5) - Service Management


44

Revenue GrowthRevenue Growth

Market Share Increase Market Share Increase

Active Customers GrowthActive Customers Growth

Revenue GrowthRevenue Growth

Market Share Increase Market Share Increase

Active Customers GrowthActive Customers Growth


Robust Sales ProcessRobust Sales Process

Product Innovation

Product Innovation

Customer Satisfaction

Customer Satisfaction

GTS GTS FundamentalFundamental

47

OrderInvoice

RenditionGoods

DeliveredCollect

PaymentCash

Pay ReconcileGoods

ReceivedReceiveInvoice

Purchase

Outsourced Receivables Domestic Collections

Centralised Collection Services Invoice Management Services

WorldLink® Multicurrency Transaction Services

Automated Clearing House (ACH) PaymentsFunds Transfer

Mass Payments Services NettingMulti-banking

Results:

• Optimize Working Capital

• Simplify receivables management process

• Improve Days Sales Outstanding

• Integrate commercial & financial services into existing platforms

• Accelerate collection period

• Minimize float

Results:

• Determine and manage cash positions with real time information

Results:• Lower transaction costs• Reduce processing time• Integrate commercial &

financial services into existing platforms

• Enhance supply chain management

• Minimize risk• Minimize Fraud

CitiDirect® Online Banking

(Both Financial & Information Flows)

Global Trade Services

GTS helps treasurers add more value by rethinking the financial value chain

Global Trade Services


48

LC Receipt

Arrange Shipment

PrepareDocs

Analyzecycle

ReconcileA/R

Follow-upPayment

ArrangeFinance

RectifyDocs

STAGE 2: DOCS PRESENTATIONSTAGE 1: PRE-SHIPMENT

STAGE 3: POST-SHIPMENT

SubmitDocs

Company AShipping /

Procurement Dept. Relocation to China

Export Export ProceedsProceeds

Letters of CreditLetters of Credit

2

1 E-LC advisingTrade e-StatementLC/Bill information

2 Document OutsourcingWith Image and Statusof preparation-> Reduce DSO

122

China Buyers

GTS Experience SharingEconomic Evolution: e-Documents

Global Transaction Services Kathy Lin GTS Taiwan Head April 13, 2005 Copyright © 2003. Citibank,...

Documents

Transcript of Global Transaction Services Kathy Lin GTS Taiwan Head April 13, 2005 Copyright © 2003. Citibank,...