Citi Begins Rollout of Integrated Digital Bill Discounting Solution
Citi has launched an integrated digital bill discounting solution that helps users monetize receivables in less than an hour. The new Citi Digital Bill (CDB) is now available to Citi clients in the U.S., the U.K., and Ireland. According to a press release by Citi, the bank plans to expand this solution to more countries in 2024, subject to necessary approvals.
Advancements in Trade Finance
"The launch of Citi Digital Bill is a significant advancement in trade finance, marking a groundbreaking shift away from longstanding paper and the wet ink-based practice of discounting bills," said Sanjeev Ganjoo, Global Head of Trade Receivable Finance at Citi Services.
CDB digitizes the flows within Citi’s proprietary receivables finance platform, CitiDirect, providing an alternative to traditional paper-based bills of exchange (BoE). It enables the parties to a digital bill—seller, buyer, and Citi—to sign, accept, endorse, and finance the digital bill in CitiDirect. The solution provides clarity and transparency for both sellers and buyers.
Evolution of Trade Finance
Trade finance is evolving from simple, often singular, financial instruments to ecosystem-based offerings that cater to the complete customer journey. This evolution includes trade loans, discounting loans, supply chain finance, as well as services like letters of credit, performance guarantees, and documentary collections.
All facets of commerce are migrating away from cash and paper checks to faster payments. Biswarup Chatterjee, Head of Partnerships and Innovation at Citi Services, highlighted the importance of crafting microservices underpinned by data and artificial intelligence, API-enabled connectivity, and tokenization.
"We’re in the middle of a larger transaction chain," Chatterjee explained. "In some cases, we’re the central place where both counterparties meet for the transaction to clear. In other cases, we’re in the middle where there’s another financial institution required to complete the transaction."
Citi is continuously seeking opportunities to partner with innovators and disruptors to drive further advancements in the financial ecosystem.
