Bank looks for tech partners to help corporate clients in LatAm reconcile statements
Citigroup wants to partner with tech startups that can help companies automate their back office financial processes.
In particular, it is looking for services to reconcile transactions – effectively, matching products sold with the corresponding bank details. But there are also huge opportunities for new entrants to improve the user experience across corporate accounting, said Driss Temsamani, head of digital channels and enterprise banking in Citi’s Latin American transaction services division.
“We’re forming those relationships market by market,” he told iupana. “We’re looking at the right fit, the right profile. We’re definitely looking there for partnerships. And of course, much further in the value chain: statements, billing, reconciliation. A lot of space is there for some of the fintechs to come in and play.”
Digital products for corporate finance need to be developed on a country by country basis because of the variations between national clearing systems and payments gateways.
“It’s not a consolidated architecture,” he said. “You have to work market by market. So you can’t go to one player, one fintech, and say let’s do this on a pan-regional basis.”
Already the bank is making moves in this direction in North America. Citi, through its CitiVentures division, bought a stake in Texas-based corporate finance platform HighRadius in February.
Just over half of Citi’s corporate clients in Latin America connect their systems directly to the bank. Most do that through their enterprise resource planning platforms (ERP) such as Oracle or SAP. The bank aims to have all its corporate clients connecting digitally within three years, allowing for real time settlement, clearing and reconciliation, instead of batch-processing.
“56% of what we do is under that model,” said Temsamani. “The rest, we’ve got to bring to that model.”
Already, Citi has five clients in the region that connect through the bank’s new suite of APIs. The CitiConnect API portal radically simplifies the integration time for corporate clients to connect to the bank’s systems, and offers options for checking balances and statements and making payments.
Panamanian bank Banistmo is testing gamification and QR payments
Banregio integrates e-commerce and deliveries into its app
Innovations on top of old tech amplify challenges for bank cybersecurity in Argentina
Sao Paulo-based neobank prioritizes data analytics, shuns blockchain
Digital lending startups set to get cheaper, easier funding as investors look at new asset classes
Banks and startups in Latin America are using new technology that will cut costs for cross-border payments and currency conversion
How well do you know the strategies of your competitors when it comes to digital transformation in Latin American banking?
Take our quiz to see!
Can I bring you dinner?
Which bank is tapping its POS network and building APIs to offer a delivery service that it hopes will boost client loyalty?
New challenger bank
A new Brazilian challenger bank called C6 Bank is close to launching. It’s billing itself as the #NextBigFin. The bank is backed by the chairman of which traditional bank?
Mexican banks are starting to use artificial intelligence tools. What’s the main application of the technology currently in Mexican banks?
What’s the biggest digital threat to traditional banks today?
Seems you’re a bit behind on what the rest of the market is doing…
Why not sign up for iupana‘s weekly newsletter to get exclusive news and analysis each Monday on how technology is transforming financial services in Latin America and the Caribbean? (It’s free!)
Not a bad effort…
Want to improve your score for next time? Sign up for iupana‘s weekly newsletter to get exclusive news and analysis each Monday on how technology is transforming financial services in Latin America and the Caribbean. (It’s free!)
Great effort – you’re clearly an expert in technology in financial services in Latin America!
Show your friends and colleagues on social media how well you did with these handy sharing buttons.
- Nexoos gets pre-Series A round, preps for banking license
- Banks bulk up cybersecurity as sophisticated threats reach LatAm
- Old core, new services: Inside Banistmo’s digital strategy
- Bank or platform? Banregio’s digital bank aggregates services
- Bradesco changes credit scoring, fee structure to drive Next sign-ups
- Old infrastructure, new services create fresh bank cybersecurity risks