Citi Extends Cash Concentration Capability to Non-Business Days

Saying it’s meeting the growing demand for real-time treasury management, Citi has launched a new cash concentration capability that automatically transfers funds seven days a week.

Dubbed 7-Day Sweeps, this new offering for institutional clients eliminates the need for these clients to manually transfer funds on weekends and holidays, when automated sweeping has historically not been done, Citi said in a Wednesday (Oct. 5) press release.

“With a growing number of companies running their businesses 24X7, we’ve seen an increase in the demand for seven-day sweeps, particularly among fast-moving, high-growth technology and eCommerce companies,” Michael Berkowitz, global and North America head of product management, liquidity management services with Citi’s Treasury and Trade Solutions (TTS), said in the release.

The company said in the release that this trend is being driven by consumer behavior, instant payments and new eBusiness models.

These “seven-days-a-week” activities cause companies’ liquidity levels to ebb and flow, so they need cash concentration structures that can respond quickly, Stephen Randall, global head of liquidity management services for Citi’s TTS business, said in the release.

“Our 7-Day Sweeps solution is designed to address this need by extending the automated funding of negative balances and centralization of positive balances to non-business days, helping to reduce risks, increase efficiency and optimize liquidity all year round,” Randall said.

The new 7-Day Sweeps offering is now available for domestic cash concentration structures in the United States and South Korea. Citi plans to expand it to other markets as well, according to the press release.

Treasurers need the right tools to embrace the new paradigm that is changing firms’ approaches to cash flow management and risk, as reported in the PYMNTS and Citi collaboration, “Powering Smart Treasury.”

Read more: Citi: Smart Treasuries Of The Future Put The Customer Front-And-Center

Whether an organization has decided to change its business model or simply seeks to optimize back-office financial operations, firms are ushering in the age of smart treasury — a concept that involves embracing digitization and technology in sophisticated ways, the report found.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.