Service Center Best Practices for Complex Receivables

Transcription

1 Service Center Best Practices for Complex Receivables Sarah Knapp Assistant Commissioner, NYC Department of Finance Nicole Toulis Sardo Director, Public Sector Market Management, Citibank, NA November 5, :30-9:30 AM

2 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?

3 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. Globalization Managing Expansion & Diversification 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

4 Shifting Behavior Consumer to Business Significant growth in debit and electronic payments Over 50% of C2B payments are digital 1 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 1 McKinsey Payment Study, Citi internal analysis 4

5 Common Receivables Pitfalls Disparate systems and data leads to time consuming manual reconciliation and inefficient working capital deployment. Payment Methods Information Channels Regional Data ACH Bank Reporting NA Wires Reports Lockbox File Feeds Asia = Cards Excel LATAM FX ERP Reports EMEA Unhappy CFO Chaos Disparate banking systems and data leads to: Incomplete or duplicate data Manual reconciliation Slow data reporting Inefficient working capital deployment = lost money! 5

6 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 Proactive Exception Management Investigate exceptions, follow up learn Soup to nuts ability View transaction history Correct exceptions Repair incorrect data Return erroneous transactions Graphical Dashboards Visualize local to global comparisons and trending Analyze transaction data by channels and instrument types Understand transaction trends and flows Happy CFO! Healthy Company 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 6

7 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?

8 New York City More than $40 billion annual collections across 29 million transactions supporting 36 NYC agencies with Hundreds of different transaction types 8

9 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

10 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

11 NYC Shared Service Center 11

12 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

13 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

14 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

15 The Results Program Benefits Better Vendor Contracts Increased Agency Efficiency Lower Cost Options Available to Public Facilitates Future Service Enhancements 15

16 We welcome your questions! + 7