Innovative Developments Enabling
Production Success
Anand Mitra
Director, Global Product Manager
Treasury and Trade Solutions, Citi
Patricia Hui, MBA, CTP
Senior Corporate Treasury Manager
Mentor Graphics Corporation
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Patricia Hui
Mentor Graphics Corporation
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Company Background
Technology leader in electronic design automation
Incorporated in Wilsonville, Oregon in 1981
Providing software and hardware design solutions worldwide
Total revenues of $1.2 billion reported last fiscal year
Operating in 27 countries worldwide with 43 legal entities
4 SSCs in US, Poland, India, and Singapore
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Company Background
Technology leader in electronic design automation
Incorporated in Wilsonville, Oregon in 1981
Providing software and hardware design solutions worldwide
Total revenues of $1.2 billion reported last fiscal year
Operating in 27 countries worldwide with 43 legal entities
4 SSCs in US, Poland, India, and Singapore
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Bank Account Management Challenge
Managing 100+ bank accounts around the world
84 bank accounts maintained with Citi
Centralized bank account management at corporate level
Complex and tedious documentation requirements
Authorized signatories located across the globe
Difficulty with documentation tracking
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Electronic Bank Account Management
(eBAM) Solution Implementation
Decided to adopt Citi’s proprietary web-based application
Implemented the solution in phases
Assembled project team with appropriate representatives
Arranged weekly project call to monitor progress
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Expected Benefits
Manage bank accounts electronically
Gain visibility and control of bank account maintenance requests
Eliminate routing of paper documentation where digital signing is permissible
Maintain central repository of global bank account information for reporting
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Expected Benefits (Cont’d)
Assure account inventory and mandate structures are in sync with bank
Enhance internal control through user access restrictions
Increase productivity by shifting focus to strategic issues
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Takeaways
Where are you spending your time in the bank account management process?
What is the cost associated with this process?
What do you want to accomplish from the risk standpoint?
Have a Clear Picture of the Underlying Process
Action Steps
Establish a master list of active bank accounts; validate with banking partners
Determine which eBAM solution fits your organization (proprietary vs. multibank)
Assemble project team with members from relevant functional groups
Design workflows that dictate and document controls & procedures of bank account management
Schedule regular project call to monitor progress and address issues
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Anand Mitra
Citi Treasury and Trade Solutions
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Ongoing Challenges
Multiple Bank
Accounts
Compliance
and Risk
Efficiency
Banking
Operations
Account
Management is
manually intensive
Authorized signers
in various locations;
paperwork routing
inefficient
Must maintain
continuity of
business in cases
of unexpected
people movements
Globally
distributed data
Internal audit to
check eligibility of
signers against
business
requirements
Complex and non-
standard
documentation
requirements
Periodic audit of bank records to keep
synchronization between internal and bank records
Regulatory compliance
Multiple legal entities and jurisdictions
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eBAM Benefits
• Reduction in Corporate request preparation time
• Simple request can be Straight Through Processed
• Faster turn-around-time where
e-documentation accepted
• Increased success rate
• Need for paper documentation does not go
away entirely
• Consistent re-use of documentation
• Pre population of forms
Target End-State
% Improvement
90% Account Closure
75% Account Maintenance
75% Signer Add
75% Signer Delete
75% Account Opening
Efficiency with eBAM Paper Reduction with eBAM
Target End-State
% Improvement
100% Account Closure
100% Account Maintenance
90% Signer Add
75% Signer Delete
50% Account Opening
Visibility and Control increase with the adoption of an electronic
bank account management solution Current State:
Authoritative database of accounts and signatories
Traceability of all requests submitted via eBAM
Full reports and audit trails
Some bank processes remain manual
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Citi eBAM Approach
Citi offers two different options for eBAM: A Citi hosted web based
front–end solution and via the emerging multibank ISO XML
messaging
Citi Proprietary eBAM
Faster
adoption
Citi Web Front-end Live with 59 Countries
Feature rich Efficient
Treasury
work station
provided
front end
View all
accounts
across all
banks
Request
Initiation /
Reporting
ISO XML 20022
15 Messages (Account
Opening, Maintenance,
Mandates)
Evolving
ecosystem Multi-bank Standards
Currently in Pre-production Pilot
Bank
(Other)
SWIFT Standard XML Messaging
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Following are the key challenges a bank will typically face in
adopting eBAM
Operational
Resources
Legal and
Regulatory
Standards
Technology
Influencing
Factors
Document gathering, indexing and loading to database
Varied processes and applications due to large country footprint
Varying Country Regulation
Customer Due Diligence (Know Your Customer)
Data Protection
Effort and Time required to digitize documentation
Maintaining separate processes for paper and electronic channel
Challenges of new technology adoption
User adoption
ISO XML messages enhancements are needed to overcome limitations seen in the previous release of messages
eBAM V1.H2 harmonization approval in process
Need for synchronizing messages and requirements with treasury solution providers one at a time
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2
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Overcoming Key Challenges
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Influencing Factors for Client Evaluation
of eBAM Key considerations when determining which solution to implement:
Bank Offering Or Version ISO
20022 2.0
Bank Account Organization
Organization Preparedness
Digital
Signatures
Cost
Influencing
Factors
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Corporate Practices for eBAM Adoption
Technology Assessment
Bank eBAM vs. BAM
Hardware and software requirements
Corporate Governance
Review corporate policy and best practices
Process standardization
Establish the new setup and designate
resources
Delegation of Authority
Transition from the paper-based Workflow to
the electronic Workflow
Review of current paper based Workflows and
mapping a consistent authorization electronic
Workflow model
Establish Performance Matrix
Introduce controls for monitoring
Resources
Resource selection and training
Dedicated implementation project team and
ongoing eBAM technical support
Pre-implementation review with bank
Intensive validation and reconciliation of client
and bank data
Rollout Strategy
Determine the scope and match with bank’s
eBAM capabilities and branch footprint
Start small with a few countries at a time
Integration of new technology requires user
adoption and training
Treasury Workstation Connectivity
Pilot testing of connectivity, authentication and
message types with multiple vendors and clients
Thorough understanding of vendor applications
Digital Credentials
Create New
Workflows
Weigh Bank eBAM vs.
BAM Solution Implement Solution
Load Data and Sync
with Bank
Transformation
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eBAM Adoption; Industry Trends
• Corporates focused on Bank Account Management; increasing data quality
• Adoption of a digital solution has increased among larger corporates but remains limited
• Multi bank standardization efforts continue; more non U.S. banks are participating on industry
committees
• Risk management solutions seen as greater benefit; must offer operational efficiencies
Regulatory Reporting on Accounts
Mandate Management
• Enhance features to assist treasurers with risk/fraud management to drive wider adoption
• Proprietary solutions have been implemented more widely as this is often seen as a more
manageable step into the digitization of data
The efficiency of a new system will depend on the level of
Dematerialization, Standardization and Automation
Efficiency
Automation
Standardization
Dematerializtion
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registered throughout the world.
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