Mapping clients’ ecosystems to anticipate needs

When banks engage with clients, it is usually in response to clients’ specific needs. They might be expanding globally, wanting to improve their processes, or looking to transition from manual to automated transactions. A banker’s instinct is to address this immediate need.

Citi Commercial Bank has developed a different model, an ecosystem approach, where we take a step back to understand our clients’ overall business.

This ecosystem approach helps clients to get the most from Citi – improving their treasury efficiency, for instance – and enables us to build a relationship that delivers long-term benefits.

How does an ecosystem approach work?

To understand a client ecosystem, we need to know their business inside out.

First, we research the client’s business model and operations using publicly available information like their website and news reports. Based on this research, we create an ecosystem flow that outlines the client’s customers, their locations, and how they interact.

We can then expand this to the client’s suppliers. For example, if the client is a manufacturing company, we identify where their factories are and who their raw material suppliers are. If it’s a digital tech company, we map out the interactions between the firm and its various contractors or service suppliers.

For existing clients, our internal tools are helpful in this process. Our Client Relationship Insights solution provides a snapshot of all the client’s operations and transactions with us.

We can access payment transactions and accounts within our system. This allows us to see details like who they are making payments to, such as a supplier in China, which we include in the ecosystem flow.

When we meet with the client, we share the presentation and listen to understand their growth ambitions, and in particular which markets they intend to target. This way, we can fill in the gaps between our analysis and the client’s actual situation.

The result is a holistic understanding of their business.

What makes an ecosystem approach different?

By taking the time to understand their business, we can understand clients’ immediate needs and find ways to improve their overall operations.

Our analysis might direct clients toward functionality in their existing solutions that could be helpful. At many fast-growing companies the person with treasury responsibility may have other tasks and not have time to explore functionality thoroughly.

Our ecosystem approach delivers value in several ways:

• For example, our engagement with one client highlighted that visibility over cash balances across multiple banks was a key concern. We showed them how to get all their balances – both aggregated and broken out – on a single screen in CitiDirect.
• One fast-growing company was still executing cross-border payments manually. With their payment volumes soaring, this approach was becoming untenable. Following an ecosystem analysis, we helped them automate their payment processes.
• One robotics firm, which is now moving into AI, was at the cutting edge of technology operationally but its treasury had limited digital engagement with Citi. We showed them how to use self-service and other tools to speed up their processes and improve efficiency.
• If Citi analysis shows that a client’s customers or partners are also Citi clients, there may be opportunities to enhance the movement of funds and information. Using Citi solutions allows clients to access later cut-off times and lower costs by using local clearing systems across Citi’s global footprint.
• While we start with cash and treasury management, our ecosystem analysis can reveal opportunities for other Citi solutions, such as with the wealth management team or the investment bank, if a company is planning to IPO.

Our ecosystem approach is not a one-off engagement. We create a plan that outlines what we will do in the short term (the first three months), the medium term (up to six months), and the long term (up to 12 months). This allows us to stick to the plan during discussions with clients, showing what we've done and what we're working on next.

If priorities or business models change, we can adjust the plan accordingly. This approach helps create a clear roadmap.

Creating a strong relationship

Our experience is that clients – especially younger firms in disruptive sectors – really enjoy engaging with us on this approach. They want to share their passion about their business objectives.

The process concentrates our minds on finding the right solutions to help clients’ ambitions become reality. These shared learning experiences help form a bond that strengthens relationships for the long term.

Being able to offer you the right solutions at the right time, and unlock the power of our network, is crucial.

Our approach creates a virtuous circle: the more you work with us, the more we learn about your needs, and the better we can serve you.