Citi has launched an integrated digital bill discounting solution, which, as stated by this financial institution, will help customers monetize accounts receivable in less than an hour.

The mentioned bank’s new functional solution has been named the Citi Digital Bill (CDB). Access to this product is provided to the lender’s customers who reside in the United Kingdom, Ireland, and the United States. The relevant information is contained in the press release of the financial institution, which was published last Monday, October 28.

The press release also noted that the bank intends to expand the new functional solution to more countries by the end of the current year. Moreover, in the relevant context, it was separately clarified that the corresponding plan will be implemented provided that the financial institution receives the necessary approvals for this.

Sanjeev Ganjoo, global head of trade receivable finance at Citi Services, stated that the launch of CDB is a significant advancement in the area of trade finance, which is marking a groundbreaking shift away from the traditional paper and wet ink-based practice of discounting bills.

The press release contains information that the new functional solution digitizes flows within the framework of the creditor’s proprietary platform for financing receivables CitiDirect. It was also noted separately that in this case, customers are offered an alternative to traditional paper-based bills of exchange (BoE).

Moreover, the press release contains information that as part of the new functional solution, the seller, the buyer, and the bank can sign, accept, endorse, and finance a digital bill in CitiDirect. In this case, transparency and clarity are provided for both sellers and buyers.

Sanjeev Ganjoo stated that CDB is a testimony to the approach of a financial institution based on digital technologies and focused on enhancing solutions in the area of trade finance. According to him, the bank, effectively using the power of technology, continues to generate substantial value for its customers by increasing transparency and speed.

It is worth noting that the trade finance area is currently on an evolution trajectory from simple, often singular, financial instruments to ecosystem-based offerings. The relevant offers cater for the complete customer journey and include trade loans, supply chain financing, and discounting loans. Moreover, in this case, provided services such as letters of credit, collection of documents, and performance guarantees.

Biswarup Chatterjee, head of partnerships and innovation at Citi Services, in January, during a conversation with media representatives, said that all facets of commerce are migrating away from cash and paper checks to faster payment solutions. He also noted that Citi’s opportunities in this case consist of crafting microservices based on data and artificial intelligence, API-enabled connectivity, and tokenization. Biswarup Chatterjee stated that the bank is in the middle of a larger transaction chain. Also, according to him, in some cases, a financial institution is the central place where both counterparties meet for the transaction to clear. Besides, he stated that the bank is in the middle of the process when another lender is required to complete the transaction.

Currently, there is a state of affairs in which digital trade finance technologies and globalization drive innovation and unlock liquidity throughout the supply chain. In this context, is particularly important the task, which is to ensure that millions of companies belonging to the small business category are not deprived of crucial access to financing. It is worth noting that the mentioned firms help fuel the global economy.

As we have reported earlier, Citi to Enable Cross-Border Payments to Mastercard Debit Cards.