Citi has launched On-Demand Sweeps (ODS) in China, a new digital liquidity solution for corporate clients to self-service real-time sweeps and manage working capital more efficiently.
The new offering comes in response to the market demand and emerging treasury needs for real-time liquidity adjustments.
Using ODS, companies with subsidiaries in China will have the flexibility to physically pool the funds between their physical cash concentration accounts as and when required, or at a scheduled time.
According to Citi, this allows treasury managers to swiftly adjust the amount and direction of their cash pool sweeps even after payment cut-off times.
Companies that previously struggled with liability sharing or overdraft availability can now establish a China domestic cash pool or Shanghai Free Trade Zone advanced cross border cash pool to optimize their working capital, Citi explains.
Howard Yang, China head, Treasury and Trade Solutions (TTS), Citi, comments: “Citi’s award-winning suite of liquidity management solutions has long been regarded as market-leading. We continue to invest in digital platforms to offer clients differentiated value and simplify their day-to-day treasury operations.”
Yang highlights: “The ODS solution enhances transparency and control for clients to optimise their liquidity in real-time, unlocking previously restricted scenarios for cash pooling in China.”
Sandip Patil, Asia Pacific head of liquidity management services, TTS, Citi, says: “For our clients managing liquidity in China, ODS is a strategic tool to enhance real-time treasury agility.”
“Treasurers can now make more informed and faster funding decisions, leveraging digital dashboards for cash pooling structures and real-time data analysis for interest reallocation calculation and settlements.”
Patil adds: “Pre-set parameters that meet China regulatory control requirements are also automatically fulfilled and validated.”
Elsewhere, Citi is set to wind down its consumer banking business in Korea. This comes as part of the strategic actions the bank is taking to refocus its Global Consumer Bank presence in Asia and Europe, the Middle East and Africa on four wealth centers, and pursue exits from its consumer franchises in 13 markets across the two regions.
The four wealth centres include Singapore, Hong Kong, the United Arab Emirates, and London.
Even with the wind-down, the exits from these consumer franchises are accretive to capital and are still expected to release approximately $7 billion of allocated tangible common equity over time, $2 billion of which is related to the Korea wind-down.
Citi will continue to contribute to the development of the Korean financial market as it invests in and grows its market-leading Institutional franchise in the country.
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