Citi Taiwan recently held a seminar titled “Beyond 2023: Navigating a Digital and Sustainable Future” with over 50 corporate clients in Taiwan to discuss the rapidly evolving business and economic environment and the solutions corporates may need to continue to be successful in this future state.
Aftab Ahmed, CEO for Citi Taiwan, and Kanika Thakur, Head of Corporate, Commercial and Public Sector Sales for Citi Treasury and Trade Solutions (TTS) in Asia Pacific, jointly made opening remarks for the event and sought to understand the pressing needs of clients and provide solutions.
Digital adoption and artificial intelligence have had an impact on business operations and models, compelling companies to adopt new technologies and techniques to optimize their business models and update their operational processes, Aftab said. Additionally, he stated that Citi is actively helping its clients shift to more digitally enabled platforms. He also noted that Citi is furnishing its clients with more convenient and faster digital services to help clients achieve their operational goals efficiently. “Citi processes more than US$4 trillion in transactions in over 140 currencies globally every day, and we have built our financial services infrastructure to accommodate collections and payments, cash management and trade finance on an integrated digital platform. Our global internet banking platform for corporates enables efficient cross-border collections and payments, balance inquiries and transaction execution” (Aftab).
Photo: Citibank Taiwan
Speaking about the impact of ESG on businesses, Aftab stated that “Citigroup is committed to addressing climate change concerns and is helping drive the transition to net-zero. Over the past year, Citi Taiwan continued to build internal knowledge and skills on climate related issues, develop strategies and targets, and introduced various coping measures such as net zero initiatives at its own premises and facilities, offered climate-related financial products to corporate clients, and promoted bank-wide education and training on climate risk”. Aftab also cited the example of Citi’s cooperation with NGOs to generate carbon credits, which not only helps NGOs to save electricity, but it also helps them convert the reduced carbon emissions into carbon credits for sale to other businesses.
In her opening remarks, Kanika Thakur pointed out that digitization was essential to the future development and success of traditional industries, high-tech industries, service sectors and small and medium-sized enterprises, as consumer habits had shifted significantly during the pandemic.
Thakur further stated that in an uncertain economic environment, a digital approach to managing working capital and liquidity was even more crucial. During ongoing engagement with clients, Citi received feedback that corporate treasurers found it troublesome to manage different platforms for each of their banking partners and for each financial instrument., Instead, corporate clients were keen on having visibility and accessibility of cash, and the concentration of liquidity all in one place, to better utilize working capital and avoid borrowing in a high interest rate environment.
To cater to this need, Thakur suggested bridging the cash visibility and accessibility gap through digital technology and fintech products. She also stressed that now was a good time to assess cash concentration and centralization of capital deployment.
“The objective of cash concentration and capital deployment concentration is to optimize global liquidity by maximizing the participation of legal entities, countries and currencies within the limits allowed by regulations, facilitating liquidity management and counterparty risk management, as well as simplifying account management and streamlining platform usage for companies,” Kanika added.
Kanika Thakur also talked about ESG, opining that while many clients know that ESG is important, they don’t necessarily understand the implications for their business, or know what they should be doing. Citi provides a benchmark and ESG dashboard with which they can work with clients to understand what their peers are doing, based on internal and external data. Meanwhile, the group takes a step-by-step approach to setting net-zero carbon reduction targets, establishing ESG and climate-related risk management and investment indicators, and gradually driving its energy and sustainability transformation. Thakur highlighted that the sustainability transformation of businesses had begun.
In light of the uncertain economic outlook and the mounting environmental challenges, digital transition and sustainable development are the most critical factors driving business growth. How to leverage digital technology to accelerate ESG transition, monitor risks and seize green opportunities were some of the top concerns for Taiwan enterprises. Citi is confident of its ability and expertise to partner and guide Taiwan corporate clients in their digital and sustainability transformation.
Citi was named Digital Bank of the Year in Asia Pacific by The Asset magazine in 2022 for its outstanding performance in Treasury and Trade Solutions. Citi Taiwan also won Best International Bank in Taiwan for the 20th straight year and Best Corporate and Institutional Adviser – Global for the 8th consecutive year in The Asset Triple A Country Awards 2022, as well as bagging several awards in the financial advisory and trading categories, demonstrating that Citi’s deep commitment to the local market is recognized by professional institutions. Citi was also named Bank of the Year in Asia Pacific at the International Financing Review (IFR) Asia Awards 2022.
Citi’s Treasury and Trade Solutions helps clients succeed by rendering innovative, integrated, tailored cash management and trade finance services to multinational corporations, financial institutions, and government agencies around the world. Citi’s TTS division holds the largest operational network in the sector, with a network spanning over 90 countries and a globally integrated technology platform. Citi continues to offer the most comprehensive, digital treasury, trade and cash flow management solutions in the industry.
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