Service Center Best Practices for
Complex Receivables
Sarah Knapp
Nicole Toulis Sardo
Assistant
Commissioner,
NYC Department of
Finance
Director,
Public Sector Market
Management,
Citibank, NA
November 5, 2014
8:30-9:30 AM
Agenda
1. Trends in Receivables
-
Key Trends
-
Shifting Behavior
-
Common Receivables Pitfalls
-
Best Practice Solutions
2. New York City Case Study
-
Introduction
-
The Before-state
-
The New System
-
Our Payment Center of Excellence
-
How we Marketed
-
The Customer Outcome
-
The Results
3. Questions?
Key Trends
Corporations need to be nimble in a complex and evolving market. Successful companies will take
advantage of trends to reengineer receivables and differentiate themselves from competitive peers.
Managing Expansion & Diversification
Globalization
Digitization &
Big Data
Supporting New Devices & Applications
Lockbox
Consolidation
Processing for B2B Payments
Regulatory
Reform
Adapting to Regulatory Change
Shifting Behavior
Keeping Up with the Pace of Change
3
Shifting Behavior
Consumer to Business
•
Significant growth in debit and electronic
payments
•
Over 50% of C2B payments are digital1
•
Increasing adoption of electronic bill
presentment
Business to Business
•
Nearly half of all B2B payments are
electronic or card based
•
Electronic payments set to outpace paper
1McKinsey
4
Payment Study, Citi internal analysis
Common Receivables Pitfalls
Disparate systems and data leads to time consuming manual reconciliation and inefficient working
capital deployment.
Payment Methods
ACH
Information Channels
Regional Data
Bank Reporting
NA
Wires
Email Reports
Asia
Lockbox
File Feeds
Cards
Excel
FX
ERP Reports
LATAM
=
EMEA
Chaos—Disparate banking systems and data leads to:
• Incomplete or duplicate data
• Manual reconciliation
• Slow data reporting
Inefficient working capital deployment = lost money!
5
“Unhappy
CFO”
Best Practice Solutions
A ‘single version of the truth’ across business units, geographies, and currencies that provides increased
visibility to optimize cash and unlock trapped liquidity.
Integrated Data Warehouse
• Map all remittance data into
a single system
• Implement current standards
• Leverage existing BAI 2 file
and Business Activity
Management tools
• Achieve complete data
transparency in one easy to
use, intuitive platform
Graphical Dashboards
• Visualize local to global
comparisons and trending
• Analyze transaction
data by channels and
instrument types
• Understand transaction
trends and flows
Proactive Exception
Management
• Investigate exceptions,
follow up—learn
• Soup to nuts ability
 View transaction history
 Correct exceptions
 Repair incorrect data
 Return erroneous transactions
“Happy CFO!”
Healthy Company
6
Comprehensive
Financial Management
• Foster dialogue between
treasury, investment, A/R and A/P
and business departments
• Innovate across gaps to provide
business real-time business
insights into cash positions
Agenda
1. Trends in Receivables
-
Key Trends
-
Shifting Behavior
-
Common Receivables Pitfalls
-
Best Practice Solutions
2. New York City Case Study
-
Introduction
-
The Before-State
-
The New System
-
Our Shared Service Center
-
Marketing Approach
-
The Customer Outcome
-
The Results
3. Questions?
New York City
More than $40 billion annual collections
across
29 million transactions
supporting
36 NYC agencies
with
Hundreds of different transaction types
8
The Before-State
Our Lack of a Centralized Infrastructure …
… Led to an Inconsistent Customer Experience
Each agency had its own distinct payment infrastructure, leading to:
• Different services and acceptance methods
• Inconsistent payment experiences
• Conflicting policies and procedures
• Varying costs and contract terms
• Limited payment expertise
9
The New System
Centralized New York City Payment Utility
Flows: Taxes, Licenses, Permits, Fees and Fines
• Quicker more efficient revenue collection
• Standard, automated processes resulting in increased control
• Enhanced transparency regarding receivables, customer issues and collection trends
10
NYC Shared Service Center
11
How We Marketed
To drive customer awareness, New York City launched a coordinated campaign targeting business and
citizen constituents to market more cost effective ways to pay for City services.
12
The Customer Outcome
• Simpler, faster & safer ways
to pay
• More convenient ways to pay
• Access to latest
payment services
• Increased accountability
• Improved compliance
• Internal payment expertise
• Lower processing costs
13
Key Best Practices that Led to Success
1. Spent time to well define (and limit) project scope
2. Establishment of a cross-functional team with all stakeholders
3. Engaged agencies with a road show to build support from the
bottom up, as well as worked with city executives to drive top
down directive
4. Created scorecard to measure success and demonstrate
track record for project stakeholders
14
The Results
Program Benefits
Better Vendor Contracts
Increased Agency Efficiency
Lower Cost Options Available to Public
Facilitates Future Service Enhancements
15
We welcome your questions!
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