Helping To Weather The Storm With A Trade Bank For All Seasons

Treasury and Trade Solutions 10 Open for innovation Citi’s global network of people, data and relationships fosters a mindset for effectively helping to find opportunities, manage risks and make connections for clients. Being open to various forms of innovation and collaborations is a key requirement. Whatever the path, the destination should be delivering client-centric innovation. Citi is collaborating with multiple leading, carefully selected third parties to help bring enhancements to clients. Example: Trade Information Network Some ventures, particularly those involving a significant change in industry practice, in many instances are best executed in collaboration with industry partners. An excellent example is the Trade Information Network, a consortium that Citi helped found in 2018, together with five other banks 5 . As an inclusive global multi-bank, multi- corporate network in trade finance, it seeks to transform open account trading by digitising it — creating an inclusive and open industry-standard network that is open to both banks and corporates. It allows corporates to communicate trade information to banks more easily and securely (for instance by digitally submitting and verifying purchase orders and invoices), and to request trade financing directly. Once they join, buyers and suppliers are in control of their data, designating who can access it. Having reliable information assists banks and can help reduce errors and fraud, while at the same time having information earlier in the supply chain can help unlock earlier financing. By deploying open architecture, standardised connectivity and governance principles modelled on SWIFT, the Network aims for maximum adoption that eases access to trade finance for a wider range of companies, including small-medium size enterprises (SMEs). The fundamental purpose is to address the persistent industry issue of the global trade finance gap, estimated at US$1.5 trillion 6 , which affects SMEs, thereby helping such businesses and global trade to reach their full potential. Citi will use the network to offer additional financial support to suppliers earlier in the supply chain cycle. Leading banks have a responsibility to be an agent for change. Global banks also help shape the global trade landscape in line with client needs. Working closely with multinational industry bodies, such as the International Chamber of Commerce (ICC), is an important way to help promote positive developments. Banks are also working to help drive important developments in the industry. 5. ANZ, BNP Paribas, Deutsche Bank, HSBC and Standard Chartered 6. https://www.adb.org/publications/2019-trade-finance-gaps-jobs-survey