This growth comes as multinational companies across industries continue to use Citi’s solutions to help improve operational efficiency, reduce costs, accelerate time to market and ramp up their digitisation initiatives. In 2022, account balances grew by 82 per cent, accompanied by 33 per cent growth in adoption. Citi Virtual Accounts is a global solution that offers many benefits over traditional account structures including:
- Bank account simplification.
- Real-time cash concentration and account segregation based on a company’s operating model.
- Instant access to cash management capabilities.
- A fully automated and digitalised onboarding experience.
- Streamlined execution of documentation and minimised IT requirements for clients – with accounts opened and transactional within 24 hours. Previously, this process could take months.
- Domestic, international and instant payment options across multiple payment methods, spanning high value and low value payments.
- Offered across 41 currencies.
“We are pleased with the rapid adoption of Virtual Accounts by our clients. As a result, they can implement their e-commerce strategies and rapidly expand into new markets. Additionally, they don’t have to invest heavily in their own technical infrastructure,” said Stephen Randall, global head of liquidity management services, Citi Treasury and Trade Solutions.
“Virtual Accounts also helps improve the client experience by automatically reconciling payables and collections, while providing a seamless onboarding experience,” added Randall. Time to market for clients can be accelerated with Citi Virtual Accounts. This is due to the unlimited number of virtual accounts that can be added on-demand digitally. This takes place in a fraction of the time it takes to set up traditional bank accounts.
Citi continues to invest in technology innovation to help its clients grow. Currently live in the US and in 16 countries in Western Europe, Citi Virtual Accounts are offered across 41 currencies. Additional plans include launching in the Asia Pacific treasury hubs of Hong Kong and Singapore in early 2023. This will be followed by six additional countries in Asia Pacific and Canada throughout the year.
Client usage and benefits:
Matt Cornwall, head of treasury operations at Chubb EMEA, which implemented Virtual Accounts for three group entities, describes the solution as offering a broad range of benefits.
“Citi provided a collaborative relationship with Chubb to deliver a Virtual Account solution effectively and within our timescales. With a reduction of 200+ physical bank accounts, the outcome has enabled Chubb to operate with a more streamlined banking structure, centralised liquidity, improved controls and simplified reporting, alongside a material reduction in back-office admin processes that greatly improved efficiency.”
The Hut Group, an e-commerce retailer company headquartered in the United Kingdom, was also able to gain improved visibility into their cash flows by implementing virtual accounts. Ian Armstrong, treasurer of The Hut Group explains:
“By working with Citi, our transition towards a more centralised in-house bank (IHB) model was a seamless experience. Citi’s Virtual Account solution enabled us to implement a new account structure quickly, giving us access to a market leading payments network, greater flexibility in recording intercompany positions and enhanced visibility of different project cash flows within the business. The success of our transformation journey is rooted in the relationship we have with Citi and we look forward to our continued collaboration“
“Citi Treasury and Trade Solutions (TTS) enables our clients’ success by providing an integrated suite of innovative and tailored cash management and trade finance services to multinational corporations, financial institutions and public sector organisations across the globe. Based on the foundation of the industry’s largest proprietary network with banking licenses in over 90 countries and globally integrated technology platforms, TTS continues to lead the way in offering the industry’s most comprehensive range of digitally enabled treasury, trade and liquidity management solutions.”