26th October 2021 – Citi has announced the launch of On-Demand Sweeps (ODS) in China, a new digital liquidity solution for corporate clients to self-service real-time sweeps and manage their working capital more efficiently.
ODS is Citi’s innovative offering in response to the market demand and emerging treasury needs for real-time liquidity adjustments. Using ODS, companies with subsidiaries in China will have the flexibility to physically pool the funds between their physical cash concentration accounts as and when required, or at a scheduled time.
This allows treasury managers to swiftly adjust the amount and direction of their cash pool sweeps even after payment cut-off times. Companies that previously struggled with liability sharing or overdraft availability can now establish a China domestic cash pool or Shanghai Free Trade Zone advanced cross border cash pool to optimize their working capital.
“We are very pleased to bring this innovative digital solution to our corporate clients in China”, said Howard Yang, China Head, Treasury and Trade Solutions, Citi. “Citi’s award-winning suite of liquidity management solutions has long been regarded as market-leading. We continue to invest in digital platforms to offer clients differentiated value and simplify their day-to-day treasury operations. The ODS solution enhances transparency and control for clients to optimize their liquidity in real time, unlocking previously restricted scenarios for cash pooling in China.”
China is the first market in Citi’s global network to offer on-demand sweeps, further expanding the bank’s suite of real-time liquidity solutions designed to help clients unlock strategic working capital in today’s ever-shifting post-pandemic environment.
Sandip Patil, Asia Pacific Head of Liquidity Management Services, Treasury and Trade Solutions, Citi commented, “The launch of this solution further builds on Citi’s long-term commitment to deliver innovative solutions to address our clients’ complex liquidity management needs, with high-relevance to the markets in which they operate. For our clients managing liquidity in China, ODS is a strategic tool to enhance real-time treasury agility. Treasurers can now make more informed and faster funding decisions, leveraging digital dashboards for cash pooling structures and real-time data analysis for interest reallocation calculation and settlements. Pre-set parameters that meet China regulatory control requirements are also automatically fulfilled and validated.”
“We are excited to pilot Citi’s latest digital liquidity solution in China. After establishing a Shanghai Free Trade Zone advanced cross-border cash pool with Citi, the on-demand sweep now enables us to adjust both domestic and cross-border pooling directions and positions as needed, at any time. We now have greater agility and flexibility in managing our funding needs, and the real-time solution also ensures that we meet regulatory quota controls with built-in algorithms and comprehensive reporting capabilities,” said Bing Ma, Chief Financial Officer, Aland Health Holding, China.
