Citi Launches New Digital Trade Receivable Finance Solution
Citi has launched Citi Digital Bill (CDB), a new integrated digital bill discounting solution that modernizes traditional trade finance practices. The solution eliminates physical documentation needs and reduces receivables monetization time from weeks to under an hour. CDB operates through Citi's proprietary platform CitiDirect, enabling digital signing, acceptance, and financing of bills. The platform streamlines processes, reduces operational risks, and improves transparency for both buyers and sellers. Currently available in the US, UK, and Ireland, CDB is planned for expansion to additional countries in 2024.
Citi ha lanciato Citi Digital Bill (CDB), una nuova soluzione integrata per lo sconto delle fatture digitali che modernizza le pratiche tradizionali di finanza commerciale. La soluzione elimina la necessità di documentazione cartacea e riduce il tempo di monetizzazione dei crediti da settimane a meno di un'ora. CDB opera attraverso la piattaforma proprietaria di Citi, CitiDirect, che consente la firma digitale, l'accettazione e il finanziamento delle fatture. La piattaforma semplifica i processi, riduce i rischi operativi e migliora la trasparenza sia per gli acquirenti che per i venditori. Attualmente disponibile negli Stati Uniti, nel Regno Unito e in Irlanda, CDB è previsto per un'espansione in ulteriori paesi nel 2024.
Citi ha lanzado Citi Digital Bill (CDB), una nueva solución integrada de descuento de facturas digitales que moderniza las prácticas tradicionales de financiamiento comercial. La solución elimina la necesidad de documentación física y reduce el tiempo de monetización de cuentas por cobrar de semanas a menos de una hora. CDB opera a través de la plataforma propietaria de Citi, CitiDirect, que permite la firma digital, la aceptación y el financiamiento de facturas. La plataforma agiliza los procesos, reduce los riesgos operativos y mejora la transparencia tanto para compradores como para vendedores. Actualmente disponible en EE. UU., Reino Unido e Irlanda, se planea que CDB se expanda a más países en 2024.
씨티(Citi)는 전통적인 무역 금융 관행을 현대화하는 새로운 통합 디지털 무역 빌 할인 솔루션인 Citi Digital Bill (CDB)를 출시했습니다. 이 솔루션은 물리적 문서의 필요성을 없애고 외상 매출금의 현금화 시간을 몇 주에서 한 시간 이내로 줄입니다. CDB는 씨티의 독자적인 플랫폼인 CitiDirect를 통해 운영되어 디지털 서명, 수락 및 청구금을 금융화할 수 있습니다. 이 플랫폼은 프로세스를 간소화하고 운영 위험을 줄이며 구매자와 판매자 모두를 위한 투명성을 향상시킵니다. 현재 미국, 영국 및 아일랜드에서 이용 가능하며, CDB는 2024년에 추가 국가로 확장을 계획하고 있습니다.
Citi a lancé Citi Digital Bill (CDB), une nouvelle solution intégrée de remise de factures numériques qui modernise les pratiques traditionnelles de finance commerciale. La solution élimine le besoin de documentation physique et réduit le délai de monétisation des créances de plusieurs semaines à moins d'une heure. CDB fonctionne via la plateforme propriétaire de Citi, CitiDirect, permettant la signature numérique, l'acceptation et le financement des factures. La plateforme rationalise les processus, réduit les risques opérationnels et améliore la transparence tant pour les acheteurs que pour les vendeurs. Actuellement disponible aux États-Unis, au Royaume-Uni et en Irlande, CDB prévoit une expansion vers d'autres pays en 2024.
Citi hat Citi Digital Bill (CDB) eingeführt, eine neue integrierte digitale Rechnungsdiskontierungslösung, die traditionelle Praktiken im Handelsfinanzierungsbereich modernisiert. Die Lösung beseitigt die Notwendigkeit physischer Dokumentation und reduziert die Monetarisierungszeit von Forderungen von Wochen auf weniger als eine Stunde. CDB funktioniert über die proprietäre Plattform von Citi, CitiDirect, die digitales Unterzeichnen, Akzeptieren und Finanzieren von Rechnungen ermöglicht. Die Plattform optimiert die Prozesse, reduziert operationale Risiken und verbessert die Transparenz sowohl für Käufer als auch für Verkäufer. Derzeit ist CDB in den USA, Großbritannien und Irland verfügbar, mit einer geplanten Expansion in weitere Länder im Jahr 2024.
- Significant reduction in receivables monetization time from weeks to under an hour
- Elimination of operational costs associated with physical document handling
- Enhanced transparency and tracking capabilities for both buyers and sellers
- Geographic expansion planned for 2024
- current geographical availability (only US, UK, and Ireland)
- Non-negotiable instrument status may limit certain trading possibilities
Insights
The launch of Citi Digital Bill represents a significant technological leap in trade finance modernization. By digitizing the traditional bill discounting process, Citi is addressing a major pain point in working capital management. The reduction in processing time from weeks to under an hour will have substantial implications for cash flow management and working capital efficiency.
The platform's integration with CitiDirect creates a competitive advantage in the trade finance space. This could potentially increase Citi's fee-based income and market share in trade finance services, particularly as the solution expands beyond the initial markets of US, UK and Ireland. The shift from paper-based to digital processes should also reduce operational costs and risk exposure while improving scalability.
This digital transformation in receivables finance addresses critical working capital challenges faced by businesses. The near-instant monetization of receivables will significantly improve Days Sales Outstanding (DSO) metrics and cash conversion cycles for sellers. For buyers, the enhanced visibility and tracking capabilities enable better payables management and supplier relationship optimization.
The solution's contract law structure, rather than negotiable instrument basis, provides a modern legal framework while maintaining security. This positions Citi to capture a larger share of the
Solution Will Help Accelerate Monetization of Receivables from Weeks to Under an Hour
“The launch of Citi Digital Bill is a significant advancement in trade finance, marking a groundbreaking shift away from longstanding paper and the wet ink-based practice of discounting bills,” said Sanjeev Ganjoo, Global Head of Trade Receivable Finance, at Citi Services. “Citi Digital Bill is a testimony to our digital-first approach to enhancing trade finance solutions. By effectively leveraging the power of technology, we continue to create substantial value for our clients through increased speed and transparency.”
This new solution is an alternative to traditional paper-based Bills of Exchange (BoE) with a comprehensive end-to-end digital platform, streamlining and digitizing the flows within Citi’s proprietary receivables finance platform, CitiDirect. CDB enables parties to a digital bill (seller, buyer & Citi) to sign, accept, endorse and finance the digital bill in CitiDirect, thereby removing historical challenges such as fragmented manual processes, operational risks of collecting and safekeeping of paper documents, as well as delays in access to working capital. CDB unlocks the potential for quicker monetization of receivables, while bringing clarity and transparency for both sellers and buyers. CDB is not a negotiable instrument and is structured under contract laws.
For buyers, CDB enables them to gain visibility into the status of invoice approvals and access to digital bills at any time, leading to better tracking and management of transactions. It also connects buyers with key relationship banks efficiently, enhancing risk matching. This new digital solution makes it easy for clients to transition to the new system without major disruptions.
CDB is currently available to Citi’s clients in
About Citi
Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of
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View source version on businesswire.com: https://www.businesswire.com/news/home/20241027200846/en/
Media:
Harsha Jethnani
harsha.jethnani@citi.com
+65 6657 4892
Source: Citi
FAQ
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