Citi for Cities Citi for Cities Jim Kelly Innovation Portfolio - - PowerPoint PPT Presentation
Citi for Cities Citi for Cities Jim Kelly Innovation Portfolio Manager RDiL Dublin RDiL Dublin jim.kelly@citi.com Transforming Ireland Seminar #22 T f i I l d S i #22 November 4, 2010 Presentation Outline Citi? Citi? Why do
Jim Kelly Innovation Portfolio Manager RDiL Dublin RDiL Dublin jim.kelly@citi.com T f i I l d S i #22 Transforming Ireland Seminar #22 November 4, 2010
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Citigroup
Citicorp Citi Holdings
I tit ti l Cli t Brokerage and Asset Management Asia Institutional Clients Group Transaction Services, Markets, Banking, Latam , g, Private Bank and Capital Advisors Local Consumer Finance (North America) EMEA NA Consumer, Global Consumer Strategy Special Asset Pool 3
Move over $3 trillion in financial flows, and facilitate more than 5 million transactions each day with connections to over 200 global clearing systems each day, with connections to over 200 global clearing systems
‘Operating System’ for Corporate clients
S i 99% f F t 100 94% f th D li i d ki it l ffi i Service 99% of Fortune 100, 94% of the Fortune Global 500 1,000+ leading local / regional corporate clients based in Emerging Markets Deliver processing and working capital efficiency via automation, centralization Balance sheet solutions leveraging our cash & trade capabilities
Public Sector – Success Transfer
Enable operating efficiencies and improved service Service the governments of ~120 countries Over 700 public sector clients globally: service Provide greater visibility and control over financial flows Over 700 public sector clients globally: – ~400 Central Government entities – ~200 Local and Regional Governments – ~120 Central Banks, SWF’s
‘Citi Inside’ for Financial Institutions
Embedded banking infrastructure or platform provider Trusted advisor for market access, regulatory Clients include: – 400+ of top 500 banks – 200 of top 300 asset managers
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Trusted advisor for market access, regulatory knowledge and technical skill – 50% of top hedge funds – Top 10 insurance companies
Asia-Pacific
Australia
Argentina
Austria
Clearing (DCC) offering*
Proprietary network
Bangladesh
Bahamas
t l
Algeria
g U.A.E.
The global network is key to GTS competitive advantage and ability to provide holistic client solutions through a consistent and standardized global platform
* Cyprus part of Direct Custody and Clearing network; however, there is no local GTS presence (Cyprus Stock Exchange accessed remotely from Greece) Note: Proprietary network defined as on-the-ground presence and local services which include representative offices and JVs with local banks
6 Citi For Cities
Currently, the world’s top 30 cities generate 80% of h ld’ l h
The twenty-first century will be the age of the city, the urban age. The world is no longer a network of countries - it is a network of cities.
the world’s wealth.
The Urban Age
g Technology is interconnecting economies, enabling the borderless pursuit of opportunity and advantage. Cities are the heart of our culture, the seat of our governments and home to the companies that power our economy. The complexity of cities require integrated yet dynamic solutions – rooted in cultural understanding that are relevant realistic and reliable
3.5bn 7.5bn
understanding -- that are relevant, realistic and reliable. Citi – with its 200 years of history serving individuals, businesses, financial institutions and governments across the globe – is at the heart
2010 World Population 2050 World Population
For the first time in history more than 50% the earth’s population live in cities - by
population live in cities by 2050 it will be 75%
The Endless City
“150 metropolitan areas account for 30% of the world’s GDP and that is our sweet spot.”
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What is driving change?
‘Old’ cities in the
Fiscal Crunch
developed world
Fiscal Crunch Driving the search for cost and operating efficiency Population Growth Driving the modernization and extension of public services and
processes; limited automation
Driving the modernization and extension of public services and infrastructure Labour and pension costs Driving the quest for process centralization and automation
‘New’ cities in the developing world
Driving the quest for process centralization and automation Technology advances changing lifestyles Citizens are demanding greater empowerment and convenience
Explosive population growth & urban migration
modernize infrastructure
The competition for human capital Providing the impetus to modernize and provide lifestyle and business incentives to attract talent to key cities, and to promote a culture of innovation that is self-sustaining
g Private sector participation Public-private partnerships are key to driving progress and ensuring the transfer of competitive best practice to the public sector
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p p p
We enable a city’s We facilitate a city’s We enable a city s financial infrastructure
Enabling city treasurers to
efficiency, visibility and
Quality of Life
We facilitate a city s commercial infrastructure
Increasing liquidity injection and extending y, y control; providing creative funding solutions through capital substitution strategies
Life Ease of Doing Business
j g risk participation across government and business supply chains
Business
We support a city’s administrative infrastructure
Helping the city achieve
We empower a city’s social infrastructure
Integrating and consolidated efficiency, improving the bill payment experience, consolidating procurement processes, facilitating the efficient modernizing transit ticketing and services access, extending convenient banking, lending saving protection facilitating the efficient distribution of payroll & social benefits lending, saving, protection and wealth management services in key cities
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A comprehensive bank-transit partnership driving efficiency and commerce
SMRT’s Objectives Transit Banking Centers j
retail opportunity
transit stations
Transit Banking Centers
transit stations
experience
SMRT increased lease revenue Instant Banking Centers
stations across Singapore stations across Singapore 2-in-1 contactless travel and credit card
“Citib k’ “Citib k’
e a ds o use, up to 00 ee des a year’
unbanked
“Citibank’s presence complements our drive to transform our stations into lifestyle destinations of choice ” “Citibank’s presence complements our drive to transform our stations into lifestyle destinations of choice ”
Commuter education and visibility
destinations of choice. Saw Phaik Hwa President & CEO SMRT destinations of choice. Saw Phaik Hwa President & CEO SMRT
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Modernizing payment systems and improving service to beneficiaries
City of Bogota’s Citi Prepaid Services’ Citi Pay Card eliminated Government Subsidy Program
payments were paid to
p y the City of Bogota’s pain-points:
manage the physical distribution of cash
elderly citizens in person by cash at multiple locations across the city
g p y
process to manage and deliver payments electronically
make difficult and costly trips into the city centre each month and queue to collect their payment.
y p to administer and reconcile payments
monitoring and protection
p y
benefits was a massive burden on the city’s infrastructure in terms of
for use instantly, eliminating the need to travel and queue for cash
benefits offices to advise citizens on the use of
time, personnel and cost.
the card, and guide them on first time use Outcome The City of Bogota achieved process transformation with a paperless payment delivery process. The elderly citizens of Bogota have a convenient flexible dependable means of receiving their benefits Outcome The City of Bogota achieved process transformation with a paperless payment delivery process. The elderly citizens of Bogota have a convenient flexible dependable means of receiving their benefits
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elderly citizens of Bogota have a convenient, flexible, dependable means of receiving their benefits. elderly citizens of Bogota have a convenient, flexible, dependable means of receiving their benefits.
A partnership that benefits both hospitals and their critical suppliers
Catalunyan hospitals’ supply chain Citi worked with the Spanish regional healthcare authorities to devise an ffi i t li fi t b fit b th th h it l d th i supply chain
system is de-centralized to the regions; there are some 10 public hospitals in the
efficient supplier finance program to benefit both the hospitals and their suppliers. A non recourse receivables discounting program was set up enabling li t l t th i h i fl d i th i b l h t
10 public hospitals in the region of Catalunya serving a population of over 7.5 million centred around Barcelona
suppliers to accelerate their cash inflow and improve their balance sheet. Hospitals were assured timely delivery of pharmaceutical supplies.
Hospitals
Request to Have Budget Allocated to Invoice 3
suppliers to the hospitals have a contractual tenor of 60 days for payment, they suffer long Days Sales Outstanding (DSO ) 251
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Hospitals
Goods 4 Request to Use Program 6 Face Value Direct Debit q g 1
(DSOs), on average 251 days.
5 g Discount Request Direct Debit
Suppliers
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Efficient Cities
Connected Cities
Sustainable Cities
Supporting efficiency reform
processes Transparency in the management of the city’s balance sheet
management and Dealing with endemic issues relating to water, health, housing, energy, waste, transport, pollution, education,
transparency of flows across supply chains
pensions finance
relationship links
between cities poverty and job creation
supply chain finance implications pensions
Empowered Citizens
public services between cities
Competitive Cities
competition for human public services
and the distribution of wealth to support positive cycles of competition for human capital (and economic prosperity)
development of p y economic growth
mobility of global- minded affluent citizens p economic specializations (eg. education, medicine, technology, shipping, services, etc.)
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September 2010
Innovating across a continuum from incremental improvements in existing
Innovating across a continuum from incremental improvements in existing businesses to disruptive innovations with the potential to ‘change the game’
Disruptive (new to world) 10% of effort on entirely new businesses and (new to world) 10% Emergent & new businesses and customer offers Adjacent (new to Citi) 20%
to Market
20% on extending our capabilities into adjacent businesses Extend current products & Services
New t
70% on being best in Services 70% 70% on being best in class with existing products and services
Time to Market
The vision: an end to end structure to improve and further embed Citi’s innovation
The vision: an end-to-end structure to improve and further embed Citi’s innovation capability to accelerate growth
Focused Citi Strategy Business Operating Plans Priorities Sustainable Growth/Market Leadership Portfolios Focused Initiatives O i ti Plans Leadership Organization Conditions & Culture
Global Reach: All regions, across all Businesses and Functions
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RDiL is an integrated global str ct re composed of regional inno ation labs linked to a net ork RDiL is an integrated global structure composed of regional innovation labs linked to a network
Global Innovation Council Regional & Product Innovation Boards
P i iti ti
Governance
Chief Innovation Officer GTS Innovation Officer
Innovation Boards
assignment
Organisation
Regional Innovation Head
RDiL Head RDiL Head Portfolio Managers Research Analysts Capability Teams
Venture Labs RDiL EMEA RDiL ASIA
Geographical
Regional Expansion
RDiL AMERICAS
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20 Citi For Cities