Citi GCE liquidity network expands & adds capabilities

Citi has enhanced its Global Concentration Engine (GCE), which is a liquidity management service, by adding an intraday sweep capability and several user-defined controls to help clients automate their accounting and reconciliation processes. The bank also says it now has more than 50 countries live on its global liquidity network after unspecified new additions in Latin America, Europe and the Middle East.

Citi’s expanded Global Concentration Engine (GCE) liquidity network has new reach and intraday capabilities in order to help corporate treasury and other clients with automated cash concentration services. These can be used to consolidate end-of-day balances and eliminate clients’ inefficient residual cash that would be left in their banking network.

Treasuries often use partner bank solutions to simulate global access but such arrangements are subject to interbank cut-off times, says Citi. End-of-day funds movement within Citi’s proprietary network can result in more efficient working capital management for clients. Similarly, the automated nature of the liquidity management service allows treasuries to re-focus resources on strategic activities and reduce risks associated with manual tracking and reconciliation processes.

“We are very pleased to reach this significant milestone [over 50 markets],” said Mark Smith, global head of liquidity management services at Citi’s Treasury and Trade Solutions. “We see usage of global liquidity structures continuing to grow as companies centralize their treasury management, while adapting to changing regulations and tax considerations.”

According to Michael Berkowitz, global product and North American head of liquidity management services at Citi: “When we expand our conventional cash concentration process outside of developed markets, it is a challenge for our clients to navigate regulatory controls and reporting requirements. However, these very same emerging markets (EMs) are often the source of higher rates of growth for our clients. Hence, we look to build innovative solutions for these markets with controls that assist our clients in complying with the associated local requirements.”

Related reading: What are the objectives of liquidity management?