Innovative Developments Enabling

Production Success

Anand Mitra

Director, Global Product Manager

Treasury and Trade Solutions, Citi

Patricia Hui, MBA, CTP

Senior Corporate Treasury Manager

Mentor Graphics Corporation

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Patricia Hui

Mentor Graphics Corporation

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Company Background

Technology leader in electronic design automation

Incorporated in Wilsonville, Oregon in 1981

Providing software and hardware design solutions worldwide

Total revenues of $1.2 billion reported last fiscal year

Operating in 27 countries worldwide with 43 legal entities

4 SSCs in US, Poland, India, and Singapore

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Company Background

Technology leader in electronic design automation

Incorporated in Wilsonville, Oregon in 1981

Providing software and hardware design solutions worldwide

Total revenues of $1.2 billion reported last fiscal year

Operating in 27 countries worldwide with 43 legal entities

4 SSCs in US, Poland, India, and Singapore

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Bank Account Management Challenge

Managing 100+ bank accounts around the world

84 bank accounts maintained with Citi

Centralized bank account management at corporate level

Complex and tedious documentation requirements

Authorized signatories located across the globe

Difficulty with documentation tracking

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Electronic Bank Account Management

(eBAM) Solution Implementation

Decided to adopt Citi’s proprietary web-based application

Implemented the solution in phases

Assembled project team with appropriate representatives

Arranged weekly project call to monitor progress

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Expected Benefits

Manage bank accounts electronically

Gain visibility and control of bank account maintenance requests

Eliminate routing of paper documentation where digital signing is permissible

Maintain central repository of global bank account information for reporting

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Expected Benefits (Cont’d)

Assure account inventory and mandate structures are in sync with bank

Enhance internal control through user access restrictions

Increase productivity by shifting focus to strategic issues

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Takeaways

Where are you spending your time in the bank account management process?

What is the cost associated with this process?

What do you want to accomplish from the risk standpoint?

Have a Clear Picture of the Underlying Process

Action Steps

Establish a master list of active bank accounts; validate with banking partners

Determine which eBAM solution fits your organization (proprietary vs. multibank)

Assemble project team with members from relevant functional groups

Design workflows that dictate and document controls & procedures of bank account management

Schedule regular project call to monitor progress and address issues

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Anand Mitra

Citi Treasury and Trade Solutions

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Ongoing Challenges

Multiple Bank

Accounts

Compliance

and Risk

Efficiency

Banking

Operations

Account

Management is

manually intensive

Authorized signers

in various locations;

paperwork routing

inefficient

Must maintain

continuity of

business in cases

of unexpected

people movements

Globally

distributed data

Internal audit to

check eligibility of

signers against

business

requirements

Complex and non-

standard

documentation

requirements

Periodic audit of bank records to keep

synchronization between internal and bank records

Regulatory compliance

Multiple legal entities and jurisdictions

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1 2

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eBAM Benefits

• Reduction in Corporate request preparation time

• Simple request can be Straight Through Processed

• Faster turn-around-time where

e-documentation accepted

• Increased success rate

• Need for paper documentation does not go

away entirely

• Consistent re-use of documentation

• Pre population of forms

Target End-State

% Improvement

90% Account Closure

75% Account Maintenance

75% Signer Add

75% Signer Delete

75% Account Opening

Efficiency with eBAM Paper Reduction with eBAM

Target End-State

% Improvement

100% Account Closure

100% Account Maintenance

90% Signer Add

75% Signer Delete

50% Account Opening

Visibility and Control increase with the adoption of an electronic

bank account management solution Current State:

Authoritative database of accounts and signatories

Traceability of all requests submitted via eBAM

Full reports and audit trails

Some bank processes remain manual

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Citi eBAM Approach

Citi offers two different options for eBAM: A Citi hosted web based

front–end solution and via the emerging multibank ISO XML

messaging

Citi Proprietary eBAM

Faster

adoption

Citi Web Front-end Live with 59 Countries

Feature rich Efficient

Treasury

work station

provided

front end

View all

accounts

across all

banks

Request

Initiation /

Reporting

ISO XML 20022

15 Messages (Account

Opening, Maintenance,

Mandates)

Evolving

ecosystem Multi-bank Standards

Currently in Pre-production Pilot

Bank

(Other)

SWIFT Standard XML Messaging

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Following are the key challenges a bank will typically face in

adopting eBAM

Operational

Resources

Legal and

Regulatory

Standards

Technology

Influencing

Factors

Document gathering, indexing and loading to database

Varied processes and applications due to large country footprint

Varying Country Regulation

Customer Due Diligence (Know Your Customer)

Data Protection

Effort and Time required to digitize documentation

Maintaining separate processes for paper and electronic channel

Challenges of new technology adoption

User adoption

ISO XML messages enhancements are needed to overcome limitations seen in the previous release of messages

eBAM V1.H2 harmonization approval in process

Need for synchronizing messages and requirements with treasury solution providers one at a time

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1

5

2

3

Overcoming Key Challenges

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Influencing Factors for Client Evaluation

of eBAM Key considerations when determining which solution to implement:

Bank Offering Or Version ISO

20022 2.0

Bank Account Organization

Organization Preparedness

Digital

Signatures

Cost

Influencing

Factors

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Corporate Practices for eBAM Adoption

Technology Assessment

Bank eBAM vs. BAM

Hardware and software requirements

Corporate Governance

Review corporate policy and best practices

Process standardization

Establish the new setup and designate

resources

Delegation of Authority

Transition from the paper-based Workflow to

the electronic Workflow

Review of current paper based Workflows and

mapping a consistent authorization electronic

Workflow model

Establish Performance Matrix

Introduce controls for monitoring

Resources

Resource selection and training

Dedicated implementation project team and

ongoing eBAM technical support

Pre-implementation review with bank

Intensive validation and reconciliation of client

and bank data

Rollout Strategy

Determine the scope and match with bank’s

eBAM capabilities and branch footprint

Start small with a few countries at a time

Integration of new technology requires user

adoption and training

Treasury Workstation Connectivity

Pilot testing of connectivity, authentication and

message types with multiple vendors and clients

Thorough understanding of vendor applications

Digital Credentials

Create New

Workflows

Weigh Bank eBAM vs.

BAM Solution Implement Solution

Load Data and Sync

with Bank

Transformation

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eBAM Adoption; Industry Trends

• Corporates focused on Bank Account Management; increasing data quality

• Adoption of a digital solution has increased among larger corporates but remains limited

• Multi bank standardization efforts continue; more non U.S. banks are participating on industry

committees

• Risk management solutions seen as greater benefit; must offer operational efficiencies

Regulatory Reporting on Accounts

Mandate Management

• Enhance features to assist treasurers with risk/fraud management to drive wider adoption

• Proprietary solutions have been implemented more widely as this is often seen as a more

manageable step into the digitization of data

The efficiency of a new system will depend on the level of

Dematerialization, Standardization and Automation

Efficiency

Automation

Standardization

Dematerializtion

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registered throughout the world.

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