Citi Partners HighRadius for new Receivables Platform
(30 July 2018 - United States) Citigroup announced it will partner with HighRadius to develop a new cloud-based integrated receivables platform for commercial clients titled “Citi Smart Match”.
With paper receipts and invoices still a key part of any business, accounts receivable and accounts payable is one area that hasn’t received a significant amount of attention when it comes to digital innovation. But in their efforts to provide more streamlined services for commercial clients, banks have begun to develop offerings to automate such tasks which have long been deemed inefficient and overly manual. The service rolled out by Citi’s Treasury and Trade Solutions division will utilise HighRadius’ artificial intelligence (AI) and machine learning technology to increase the efficiency and automation of the cash application process of matching open invoices to payments received for its corporate clients. The technology can enhance commercial clients’ straight-through-reconciliation rates by bringing together disparate pieces of payment data and applying AI-enabled business logic to match payments received with expected receipts more efficiently.
The platform has a slicker digital interface for clients, the type they have come to expect in other areas of banking following a strategic investment made by Citi Ventures, along with PNC Bank, in HighRadius earlier this year. It is part of Citi’s overarching philosophy of seeking out and working with Fintech’s in areas where they can help Citi develop and deploy new digital products quickly. HighRadius also has a partnership with Bank of America on an accounts receivable platform, and its other clients include Walmart, Johnson & Johnson, Procter & Gamble and Starbucks. Citi launched another new product last week called Payment Insights that aims to provide institutional clients with real-time payments visibility. The platform provides clients with a complete view of the transaction life cycle within Citi’s global network, as well as across the correspondent banking ecosystem by integrating with the SWIFT global payment innovation initiative, which aims to power fast and transparent cross-border payments.
“This is an age-old problem for clients,” said Manish Kohli, Citigroup’s Global Head of Payments and Receivables. “They are using typically old solutions," and employees "spend a lot of time matching payments with invoices.” “This is a pain point for every single client of ours that’s in the business of selling goods or services. The new platform helps reduce the amount of manual input they need to do, which also helps reduce errors. The AI and machine-learning capabilities can achieve a very high match rate in an automated manner. Our partnership with HighRadius demonstrates our continued engagement with FinTech’s and the commitment to being the best for our clients. Our partnership with HighRadius demonstrates our continued engagement with Fintech’s and the commitment to being the best for our clients,” he said.