With 60 subsidiaries located around the world, LG Electronics’ Treasury team faced the challenge of managing accounts across numerous countries. In addition to managing exchanging rates, which fluctuate constantly, the team was also tasked with handling frequently changing interest rates, such as those in emerging markets. This meant the team had the mission of effectively and efficiently managing foreign exchange risk, while maximizing cash flow.
To address LG Electronics’ cash management challenges, the treasury team turned to CitiDirect BE®, Citi’s online banking portal. It was implemented to provide seamless access to all accounts across the company’s many subsidiaries. “CitiDirect BE enabled us to conveniently access all our accounts from all of our subsidiaries at a single, centralized website,” explained Matthew Yoon, Manager at Americas Treasury Center for LG Electronics. “By having a single portal for accessing all of our account information, rather than having to go to a different website for each local instance, is an enormous time saver and productivity booster for treasury.”
The LG Electronics’ treasury team also implemented Citi Velocity, a state-of-the-art platform that provides electronic access to Citi’s world-class capital markets services across equities, futures, FX emerging markets, rates, credit, commodities, securitized municipals, prime finance and research. Citi Velocity enables the treasury team to, review and download economic research materials, read desk commentary, watch live markets, monitor breaking news, and even watch videos from Citi trading floors around the world.
Since implementing the CitiDirect BE and Citi Velocity solutions, LG Electronics has significantly improved its cash management processes. “Citi Velocity is a great source for economic and market analysis, providing treasury with updated information proactively,” stated Yoon. “Now I have the latest foreign exchange trade information available in order to make the most informed decisions.”
Yoon added that for a global business such as LG Electronics, having a global bank as Citi supporting their business is crucial. “We have subsidiaries all over the world, and Citi has a presence on the ground in many countries, which is vital for our business” concluded Yoon. “I would highly recommend Citi to anyone because of their commitment to our success, the depth of the relationship and knowledge and experience they bring to the table.”