Citi Launches 7-Day Sweeps, a New Liquidity Offering For Institutional Clients
Real-time Liquidity Offering that Extends Cash Concentration to Non-business Days
Cash concentration is a corporate treasury practice that involves the transfer and sweeping of funds from multiple accounts to a single account to help optimize the use of available funds for business expenses or investments. At Citi, institutional clients use sweeps to automatically transfer cash balances between accounts held at Citi branches based on pre-standing parameters or instructions of periodicity, timing and amount.
Historically, the automated sweeping of funds among accounts in a client’s cash management pools has not been executed on weekends and holidays, creating an inconsistent cash concentration experience. During those times, funds would need to be manually transferred, ensuring sufficient liquidity to mitigate paying overdraft fees associated with increased credit utilization caused by payment activity on non-business days or after hours.
“Cash concentration is a simple and efficient solution used by companies to help optimize interest income and reduce interest costs across accounts in their sweep structures,” said
“For companies in these sectors, and others, the momentum toward real-time cash management is transforming the way liquidity is managed,” added
Citi 7-Day Sweeps is being rolled out in a phased approach, initially focusing on key treasury and cash concentration centers catering to real-time payments. Citi has enhanced its Global Concentration Engine platform, with new functionality for this upgrade and will continue to invest in technology to help ensure a consistent client experience globally. The offering is now available for domestic cash concentration structures in the
Citi Treasury and Trade Solutions enables our clients' success by providing an integrated suite of innovative and tailored cash management and trade finance services to multinational corporations, financial institutions and public sector organizations across the globe. Based on the foundation of the industry's largest proprietary network with banking licenses in over 90 countries and globally integrated technology platforms, TTS continues to lead the way in offering the industry's most comprehensive range of digitally enabled treasury, trade and liquidity management solutions.
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Source: Citi