2018 - 2019 Edition of Citi Perspectives for the Public Sector

Citi Perspectives for the Public Sector |  2018-2019 13 How Governments Can Harness the Innovation Revolution T echnological advances in payments and receivables services — combined with the fourth industrial revolution, which will fundamentally alter the way we live, work, and relate to one another — offer governments and public sector entities enormous opportunities to improve visibility and control, lower costs and enhance security. “Productivity isn’t everything, but in the long run it is almost everything.” This memorable quote from Nobel prize winning economist Paul Krugman makes clear that higher living standards and strong employment in the long run depend upon an economy’s ability to boost its productivity. It is undeniable that we have entered an era of rapid disruptive technological change, accompanied by shifts in the established economic and political order. For all participants in the economy, it is a challenge to anticipate and adapt to the changing landscape. This is especially true of governments and public sector agencies, which are responsible for the creation and operation of numerous vital functions and infrastructure, including national payments systems, key financial regulation and a sizeable proportion of the transactions and financial flows in the economy. Companies around the globe have been transforming the way they do business with the help of technology, and in so doing building consumer expectations of higher standards of service, transparency, value for money, security and speed. Consequently, governments and their agencies need to transform some of their operations to meet these raised standards, and in turn to take advantage of the benefits offered by new technologies and services. The quiet revolution Headlines about the banking world in recent years have been dominated by technical developments outside the fiat money environment — mostly around cryptocurrency-related topics that have appeared in the public discourse. While these developments are important, away from the headlines, the world of payments, receivables and trade finance has been undergoing a quiet revolution in cost, speed, safety, convenience and transparency. Global payments and receivables services have made significant improvements, driven by adoption of new technologies and collaboration among countries, banks and fintech partners. Dimitrios Raptis TTS EMEA Public Sector Sales, Citi David Walker Head of EMEA Public Sector, Citi