Service Center Best Practices for

Complex Receivables

November 5, 2014

8:30-9:30 AM

Nicole Toulis Sardo

Director,

Public Sector Market

Management,

Citibank, NA

Sarah Knapp Assistant

Commissioner,

NYC Department of

Finance

Agenda

1. Trends in Receivables

- Key Trends

- Shifting Behavior

- Common Receivables Pitfalls

- Best Practice Solutions

2. New York City Case Study

- Introduction

- The Before-state

- The New System

- Our Payment Center of Excellence

- How we Marketed

- The Customer Outcome

- The Results

3. Questions?

Corporations need to be nimble in a complex and evolving market. Successful companies will take

advantage of trends to reengineer receivables and differentiate themselves from competitive peers.

Key Trends

Digitization &

Big Data Supporting New Devices & Applications

Shifting Behavior Keeping Up with the Pace of Change

Adapting to Regulatory Change Regulatory

Reform

3

Lockbox

Consolidation Processing for B2B Payments

Managing Expansion & Diversification Globalization

Shifting Behavior

Consumer to Business

• Significant growth in debit and electronic

payments

• Over 50% of C2B payments are digital1

• Increasing adoption of electronic bill

presentment

Business to Business

• Nearly half of all B2B payments are

electronic or card based

• Electronic payments set to outpace paper

1McKinsey Payment Study, Citi internal analysis

4

Common Receivables Pitfalls Disparate systems and data leads to time consuming manual reconciliation and inefficient working

capital deployment.

Payment Methods Information Channels Regional Data

“Unhappy

CFO”

= Cards

Lockbox

ACH

Wires

FX

NA

LATAM

EMEA

Asia

Excel

Bank Reporting

Email Reports

File Feeds

ERP Reports

5

Chaos—Disparate banking systems and data leads to:

• Incomplete or duplicate data

• Manual reconciliation

• Slow data reporting

Inefficient working capital deployment = lost money!

Best Practice Solutions A ‘single version of the truth’ across business units, geographies, and currencies that provides increased

visibility to optimize cash and unlock trapped liquidity.

Graphical Dashboards

• Visualize local to global

comparisons and trending

• Analyze transaction

data by channels and

instrument types

• Understand transaction

trends and flows

“Happy CFO!”

Healthy Company

Comprehensive

Financial Management

• Foster dialogue between

treasury, investment, A/R and A/P

and business departments

• Innovate across gaps to provide

business real-time business

insights into cash positions

Proactive Exception

Management

• Investigate exceptions,

follow up—learn

• Soup to nuts ability

View transaction history

Correct exceptions

Repair incorrect data

Return erroneous transactions

Integrated Data Warehouse

• Map all remittance data into

a single system

• Implement current standards

• Leverage existing BAI 2 file

and Business Activity

Management tools

• Achieve complete data

transparency in one easy to

use, intuitive platform

6

Agenda

1. Trends in Receivables

- Key Trends

- Shifting Behavior

- Common Receivables Pitfalls

- Best Practice Solutions

2. New York City Case Study

- Introduction

- The Before-State

- The New System

- Our Shared Service Center

- Marketing Approach

- The Customer Outcome

- The Results

3. Questions?

New York City

More than $40 billion annual collections

across

29 million transactions

supporting

36 NYC agencies

with

Hundreds of different transaction types

8

The Before-State

Each agency had its own distinct payment infrastructure, leading to:

• Different services and acceptance methods

• Inconsistent payment experiences

• Conflicting policies and procedures

• Varying costs and contract terms

• Limited payment expertise

Our Lack of a Centralized Infrastructure … … Led to an Inconsistent Customer Experience

9

The New System

• Quicker more efficient revenue collection

• Standard, automated processes resulting in increased control

• Enhanced transparency regarding receivables, customer issues and collection trends

Flows: Taxes, Licenses, Permits, Fees and Fines

Centralized New York City Payment Utility

10

NYC Shared Service Center

11

How We Marketed To drive customer awareness, New York City launched a coordinated campaign targeting business and

citizen constituents to market more cost effective ways to pay for City services.

12

The Customer Outcome

• Simpler, faster & safer ways

to pay

• More convenient ways to pay

• Access to latest

payment services

• Increased accountability

• Improved compliance

• Internal payment expertise

• Lower processing costs

13

Key Best Practices that Led to Success

1. Spent time to well define (and limit) project scope

2. Establishment of a cross-functional team with all stakeholders

3. Engaged agencies with a road show to build support from the

bottom up, as well as worked with city executives to drive top

down directive

4. Created scorecard to measure success and demonstrate

track record for project stakeholders

14

The Results

Better Vendor Contracts

Lower Cost Options Available to Public

Increased Agency Efficiency

Facilitates Future Service Enhancements

Program Benefits

15

We welcome your questions!

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