Enhancing the Client Experience - Citibank · Unclear organizational alignment to address client...

Enhancing the Client Experience New Client Operations Models

Aengus O’ Connor

Client Service and Operations Head, EMEA

Key Challenges Facing Payments’ Operations

2 18 May 2015 Enhancing the Client Experience

Main Topics Key Challenge

Organizational Construct Vertically integrated processes, operating across

both human and data-driven silos

Regulatory

Requirements

Increased regulatory and compliance complexity

and costs—particularly for sanctions, AML & fraud

detection

Operational Quality and

Technology

Breakdowns in end-to-end systems, applications,

and delays in client facing communication

In-sourcing vs. Out-

sourcing

Unclear organizational alignment to address client

experience and business continuity

Citi’s Operational Models that Address Complexities

Business Command Center Monitoring all incoming and outgoing payment traffic 24 hours a day,7 days a week

Payments Engineering Designing the rules that govern Citi’s best-in-class funds transfer platform

Repair Processing Subject matter experts ensuring same-day payment execution

Treasury and Funds Management Proactively manages Citi’s liquidity positions and account balances for its clients

Sanctions Screening Escalation point for payments requiring Sanctions review

Client Experience Providing a consultative approach to client inquiry resolution

Operations and Service Organizations One team to expedite solving client investigations


Operations and Service Organizations We are evolving our organizational model to address your business needs: operational coverage when and where you need it, one stop shop for multi-currency, maximized sanctions screening to mitigate risks

One stop shop for multi-currency, multi-market support: Dublin Service for European, Middle Eastern and African markets

Process efficiency and quality improvement initiatives improve turn-around time by 21% in Investigations

• Subject-matter experts provide deep-dive root cause analysis on client inquires, providing consultative service to our clients

Customer Service Centers

Funds Transfer and Investigation Centers

Intra-day systemic updates maximize our Sanctions Screening infrastructure to mitigate risk to payment flows

• Client Operations oversight over global processing and service centers providing “follow the sun” coverage

Enhancing the Client Experience 4 18 May 2015

Business Command Center


• 24x7x365 Global monitoring and

coordination across Citi infrastructure

• Ensure connectivity of all Global Payment Operations applications

Command and control structure to monitor

and manage any market or internal

incidents

• 1st level of escalation for all Global

Payment Operations systemic alerts

• Incident management analysis and

feedback

Sanctions Screening Industry-leading sanctions screening model which utilizes in-house subject matter expertise to strengthen controls while proactively driving down false positives


1.1MM

Total Transactions Processed Daily

35,000

are referred to Sanctions L1

31,500

are released by Sanctions L1 Same Day

3,550

are escalated to Sanctions L2

3,470

are released by L2 with

minimum investigation

80

100% of all incoming and outgoing transactions are screened

Sanctions Level 1 operators perform same day review and action items per established regulatory requirements

If further sanctions screening is not required, payments are processed per same day SLA requirements

Sanctions Level 2 utilizes various methods to investigate and clear potential matches

If Sanctions Level 1 cannot declare a “false match”, payments are sent on for further review by Level 2

If Level 2 cannot clear based on information obtained, payments are escalated to Global Sanctions Compliance for final review and action

Payments Engineering Payment Engineering


Proactive review of client traffic to

identify opportunities for

increased straight through processing

Developed payment flow

optimization model within CitiFT to

decrease turnaround time by

33%

1000+ systemic updates per week

Architects behind complex payment

rule configurations

Manages industry routing updates to ensure most up to

date correspondent

banks

Repair Processing


Subject-matter experts provide

oversight of processing teams

globally

Dual-control

repair process results

& Continuous

STP improvements

22 hour operating window to maximize

throughput

Citi’s real-time, industry routing

repository facilitates wire repairs and

prevents cancellations

Commitment to same-day payment

processing

Peak Volume: 619,000

Subject-matter

experts provide oversight of

processing teams globally

22 hour

operating window to

maximize throughput

Real-time routing

repository facilitates wire

repairs and prevents

cancellations

Commitment

to same-day payment

processing


Proactive monitoring of Citi’s position with our Clearing Centers

Prioritization of high-value payments to ensure timely settlement

Management of supplemental funding to expedite payment settlement with The Clearing Centers

Real-time management of over intra-day credit lines

Treasury and Funds Management


Liaise between multiple teams to facilitate same-day payment execution

End-to-end oversight of Investigations, providing Global window coverage for incoming client inquiries

Ensure compliance with regulatory requirements

Payment experts focused on direct client engagement for inquiry resolution

7,000 weekly inquiries resolved by Investigations subject matter experts

Client Experience

End-to-end payment visibility, matching the experts, and proactive engagement to enhance client experience

A Consultative Approach to

Service

Proactive Client

Monitoring

Operations-to-Operations Connection

End-to-End Visibility

An operations-to-operations experts

connection between Citi and our banks clients means pain points are quickly

diagnosed and addressed

Visibility into global payment

flows, facilitating deep dive analyses conducted by subject

matter experts

Client Experience – Consultative Approach

Subject matter experts

actively monitor payment traffic, provide custom

scorecards that identify opportunities to improve

the client experience

Using single global product processors

and inquiry management systems helps improve our clients’ operating

efficiencies


Sample – Operations Scorecard

8.83% 8.89%

7.40%

7.60%

7.80%

8.00%

8.20%

8.40%

8.60%

8.80%

9.00%

9.20%

9.40%

OFAC Hit Rate

STP Rate 98.61%

STP Rate and Repair Reasons Repair Analysis: • 61% of repairs are on direct and

cover payments for w hich a

beneficiary’s bank w as provided that

has no direct banking relationship w ith

Citi. An intermediary w as inserted

Sample: 20: 123456789210 :32A:140801USD100 :50F:/1234567891011 Originator Information :57A: Correspondent Bank (Branch) :59:/1234567891230 Beneficiary Name :72: Additional Details

Formatting 2%

REPORTING PERIOD

CLEAN

INSTRUCTIONS (99.73%)

REPAIRED

INSTRUCTIONS (.27%)

OFAC

INSTRUCTIONS

TOTAL

INSTRUCTIONS TOTAL VALUE OFAC % STP % Repair %

(A ) (B) (C ) (D) = (A +B+C)

CUMULATIVE VOLUMES 79,536 1,230 7,663 88,429 $213,348,737,930 8.67% 98.61% 1.39%

July 2014 14,410 254 1,289 15,953 $ 40,755,314,468 8.08% 98.41% 1.59%

A ugust 2014 13,132 243 1,351 14,726 $ 30,648,286,486 9.17% 98.35% 1.65%

September 2014 13,863 211 1,343 15,417 $ 37,828,863,742 8.71% 98.63% 1.37%

October 2014 11,872 154 1,075 13,101 $ 38,984,245,803 8.21% 98.82% 1.18%

November 2014 12,273 151 1,203 13,627 $ 29,472,996,297 8.83% 98.89% 1.11%

December 2014 13,986 217 1,402 15,605 $ 35,659,031,134 8.98% 98.61% 1.39%


Sample – Investigations Scorecard

• 3.1% of all USD payment volume* results in

an investigation case.

• Investigation cases are generated 4.41% more often for this financial institution than

other banks in its peer group

• 27% of all investigations are for Return of Funds

• Debit Authority Request to Return • Incomplete Details/UTA

*Note: Miscellaneous includes Account Maintenance, Beneficiary Claims Non Receipt, Fraud Related, Incorrect Date, Incorrect I nformation , Unable to Effect and OFAC case types

**Note: This includes only U.S. Domiciled, U.S. Dollar accounts.. This does not include USD account domiciled in other branch es

REPORTING

PERIOD

Amend

Beneficiary

Beneficiary

Claims Non

Receipt

Cancellation

Request

Return of

Funds

Unable to

Apply Miscellaneous*

CUMULATIVE VOLUMES

391 48 222 629 750 136

Jul-14 58 6 44 107 155 28

Aug-14 65 8 35 98 110 24

Sep-14 53 11 39 112 131 29

Oct-14 64 7 29 101 119 30

Nov-14 75 8 29 88 112 17

Dec-14 76 8 46 123 123 8


Our Strength in Numbers TTS Client Operations supports the movement of $3 Trillion daily and 197 Million transactions monthly

12,500 professionals supporting our clients in

100+ countries

>95% of transactions

are straight through

processed

21% improvement in turnaround time on investigations

Client contact rate of 0.6% per payments processed

Largest Proprietary Transaction

Network

Best in Class Global Funds

Transfer and Inquiry Platforms


Service, in short, is not what you

do, but who you are. It is a way of

living that you need to bring to

everything you do, if you are to

bring it to your customer

interactions.

- Betsy Sanders


Questions?


Enhancing the Client Experience - Citibank · Unclear organizational alignment to address client...

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