Perspectives 2019 2020 Public Sector

Citi Perspectives 75 Authorities can create an online portal through which financial services firms can support post- validation of the taxpayer and their payment details for automated reconciliation. This system also permits pre-validation services to eliminate payment reversals due to incorrect information supplied by the taxpayer. The tax administration of tomorrow will be radically different from that of today; data will be used in a highly relevant manner, allowing systematic filing and payment in a risk- and error-free environment, and back-end operations will be so smooth that taxpayers may not even need to be in contact with tax administrations anymore. To get there, tax authorities must go beyond incremental changes using existing tools and begin revising their approach to a whole host of operational tasks. We have seen clients reduce required reconciliation of receivable transactions by over 50% through the adoption of Virtual Accounts or Artificial Intelligence tools that streamline the process and enable immediate utilization of the collected funds. 3. Embracing Improved Cost Effectiveness & Yield Maximization In addition to the focus on reducing costs, public sector spending decisions based on increasingly stretched resources have placed the need on public sector entities to optimize the funds available to them, through minimizing idle account balances and maximizing the yield on those balances waiting to be deployed. This has encouraged entities to further rationalize their bank accounts and streamline liquidity management to reduce working capital costs. Digital liquidity management systems, including advanced and interconnected technology platforms, ease account, transaction and information management and streamline, integrate and lower the cost of payments and collections. Public sector clients can get a reliable and consolidated picture of the cash they have on hand, integrate accounts and systems to concentrate and mobilize funds more effectively. Adopting a liquidity structure to offset debit and credit balances domestically, regionally and globally, reduces borrowing and permits streamlined liquidity structures, real-time visibility of compartmentalized balances and optimal yields on balances. Liquidity Solutions are widely utilized across all sectors and very frequently clients have significantly reduced or even eliminated the idle balances they had maintained in different account or countries. As a result, the net return of their assets increased as scattered pockets of liquidity were consolidated and invested on a same day basis. 4. Ensuring Secure, Consistent Risk Management & Anti-Corruption Measures Sound management of risk is essential as public sector entities digitize and strive to make lasting positive improvements in governance. It enables the use of resources more effectively and enhances strategic planning, as well as contingency planning. The trend is to focus on business sustainability, strong cyber security and to automate reconciliation to eliminate manual intervention. Digital platforms include sophisticated risk detection tools to identify outlier transactions that do not conform to routine behaviors and patterns of transactions within public sector entities. A unique profile is generated for each account which increases the detection accuracy and decreases the false positive rates. The system uses key fields in a payment transactions for training itself and tuning the underlying algorithms and finally it operates with real-time escalations, the system adjusts to each department’s workflow with the ability to stop a process from being executed. These kinds of technologies can be used to reduce these monetary losses arising from fraud, error and abuse.