To date, DKV Globality processes payments in 61 different currencies, for customers in 153 countries around the world. In order to achieve this, payments were previously treated as cross-border payments and were arranged via a number of different interfaces and banks.

DKV Globality’s goal was to set up a centralised cross-border payment process which would enable the company to make payments in multiple currencies to beneficiaries around the world. In particular, the company was looking for a solution that could provide timely and accurate foreign exchange conversion data, control over costs for individual transactions, reliable and secure payment methods in each country and an automated reconciliation process. In addition, the solution would need to be expandable and readily able to incorporate additional subsidiaries worldwide.

In order to realise this goal, DKV Globality was looking for a transaction banking partner. In 2008, DKV Globality appointed Citi to provide a range of cash management services through WorldLink. “WorldLink is a complete international payments solution that allows the client to make secure, efficient cross-border payments in more than 135 currencies, without having to maintain multiple currency accounts,” explains Thomas Merten, Managing Director of DKV Globality.

“Clients can write cheques and initiate funds transfers and ACH payments from a single operating account, getting access to low-value clearing in various countries and thereby reducing transaction costs.”

The WorldLink solution includes the following features:

• Cost savings.

  WorldLink eliminates the need for multiple foreign currency accounts and the associated idle balances, additional charges and time-consuming reconciliation processes.

• Systems integration.

  Payment instructions are submitted from the company’s ERP system via a Citibank File Services host-to-host solution, known as CP2E. Account statements, payments reports and status updates on payments are then fed back to the ERP.

• Minimises risk.

  The solution reduces the company’s exposure to cheque fraud, counterparty risk, clearing and settlement risk and currency devaluation.

• Competitive foreign exchange rates.

  Currency purchases are aggregated across transactions for better rates. The foreign exchange offering supports the use of same-day or spot contracts, rate streaming, auto-conversion and daily fixed rates.

• Streamlined clearing.

  WorldLink transactions comply with most local clearing requirements and all laws and regulations, improving clearing times and reducing costs.

In addition, subsidiaries of Munich Re can be added under a new WorldLink identity using the same set-up procedures.

The WorldLink solution was implemented quickly and DKV Globality has subsequently benefited from reduced payment costs, the integration of its payment systems and an automated reconciliation process. Implementing Citi’s WorldLink platform has allowed DKV Globality to make cheque, wire transfer and ACH payments to beneficiaries around the world through just one account.

“DKV Globality’s clients also now benefit from a more reliable and quicker turnaround of claims settlements,” says Merten. “Meanwhile, the solution can be easily replicated by any subsidiary worldwide with cross-border payments business and can be added to the existing platform to reduce costs further.”