2018 - 2019 Edition of Citi Perspectives for the Public Sector

Citi Perspectives for the Public Sector |  2018-2019 15 However, the wholesale shift of our lives online, which many of these fourth industrial revolution technologies are accelerating, also creates new risks, especially around cyber security. Fortunately, these same innovations provide an answer. Artificial intelligence is being applied to fraud detection, cyber risk mitigation and smarter reconciliation processes. Robotic process automation drives back-office processing and sanctions and anti-money laundering (AML) work. And APIs enable invisible payments and connected ecosystems and facilitate the migration from batch transactions to the real-time flows, while blockchain can be applied to reconciliation and investigation processes. These developments will facilitate further centralization of public sector activity, helping to improve visibility, control and efficiency across all operational flows. For example, for cross-border and cross-currency flows, the currency conversion and cross-border payment step has historically introduced complexity and hampered transparency of real costs. For governments and their agencies, these flows include management of foreign currency reserves, funding of overseas embassy networks, payment of welfare or pensions, purchases of goods, payments and receipts from organizations, aid payments, and receipts of payments due from counterparties abroad; they are extremely sizeable. A number of governments are seeking to leverage new technology effectively by creating single shared service centers. They also want to utilize newly built digital solutions to manage their flows and benefits such as cost reduction, improved visibility, risk mitigation, enhanced control and faster circulation of liquidity. Moreover, indirect benefits of the adoption of new tools include increased openness and potential gains in financial inclusion. Putting the public sector at the forefront of innovation Conventional wisdom says innovation is best left to entrepreneurs and the private sector. The Citi Public Sector Group begs to differ. We believe the next wave of innovation will be in the public sector as governments and their agencies use the new financial and technology tools available to drive productivity gains, and realize cost, speed, safety, convenience and transparency benefits. Our Public Sector Group has been partnering with public sector clients around the globe to enable progress through new technologies and platforms for decades. Our network presence in 98 countries supports membership of nearly 250 cash clearing systems and payments in 135 currencies; Citi is the world’s largest SWIFT bank service provider. This unique and extensive footprint guarantees delivery of best-in-class cash management and trade finance solutions. Our globally deployed solutions position Citi as the only bank that can successfully integrate unpredictable operational flows with longer-term investments, allowing our clients to maximise liquidity and achieve tangible benefits quickly. Our clients are also gaining access to local expertise to support their decision-making process, even in the most remote or high risk jurisdictions. Our co-creation and collaboration with partners — including 37 fintechs in which Citi has invested — is building the next generation of solutions for our public sector clients. Our globally deployed solutions position Citi as the only bank that can successfully integrate unpredictable operational flows with longer-term investments, allowing our clients to maximise liquidity and achieve tangible benefits quickly.