2018 - 2019 Edition of Citi Perspectives for the Public Sector

Citi Perspectives for the Public Sector |  2018-2019 47 Delivering innovation Establishing a framework and commitment to innovation was a critical component and evaluation criteria for all government card programs. Governments look for integrated innovations across four areas into its solution; mobile technology; core front-end and back- end platforms; data and application program interfaces (APIs); automated transaction reconcilement and information security. These priorities reflect the evolving needs of government. For example, a mobile-first methodology, which includes a mobile and tablet cardholder iOS and Android app as well as mobile wallets and mobile virtual cards, reflects the ever-changing work practices of government cardholders. The future of commercial cards and payments will be determined by interoperability of data and partnerships with third parties. Card issuers are now bringing a robust API set to facilitate straightforward partnerships with e-commerce platforms and fintech companies, including Amazon Business, SAP Ariba and Cvent. Protecting client data from bad actors is a critical requirement. Exposure of client data provides adversaries with a valuable source of big data and could potentially compromise national security. Card issuers are responding by offering fraud detection capabilities, customized for commercial cards, as part of a suite of protective measures that create high walls around data, designed to keep fraudsters out. Building on success In December of 2018, the U.S. government’s General Services Administration (GSA) will enter into its third commercial card contract, known as GSA SmartPay 3, which will span 13 years. For the two preceding contracts, which ran for a total of 20 years, the spend limit ranged from $2,500-$3,500, allowing micro-purchases. This new contract will have a significantly increased spend limit of $10,000. The near tripling of the spend limit highlights government agencies’ satisfaction with the controls offered by commercial cards and a recognition of the strong controls of the program. While there is occasional misuse of cards, it is rare and perpetrators are quickly identified. It also reflects the huge benefits that have accrued to the government since it introduced commercial cards. If a card program is being established for the first time, it is helpful if there is a senior sponsor to push through change and ensure the entire organization is aware of, and committed to, the program. Commercial cards offer a wide variety of controls that help manage and reinforce procurement and travel policies that a government already has in place. Government agencies should ensure that they set up sound processes and policies and assign specific individuals to take responsibility for compliance. It makes sense to start with a low spend limit; commercial cards are flexible and this can be easily changed once the program demonstrates its success. Government agencies should work closely with their bank to identify new opportunities to increase card spend for existing programs (to earn larger rebates and enhance efficiency). Banks can also provide valuable information about new card products and technology that might have the potential to transform additional areas of government spending. 1. 2. 3. 4. 5. 6. Best practice for government card program