NEW YORK–(BUSINESS WIRE)–Building on its tradition of cash management innovation, Citi Treasury and Business Solutions today announced the launch of a new solution enabling institutional clients (corporate, public sector and financial institutions) with US accounts to transfer cash to demand deposit accounts at participating US branches of non-US banks. Offered through IntraFi Network’s Yankee Sweep service, Citi’s institutional clients now have additional flexibility to diversify their deposits across multiple institutions while enjoying an opportunity for improved returns.
For treasury organizations, key aspects of effective liquidity management include risk management, counterparty exposure, daily liquidity and yield optimization. In order to achieve these goals, organizations would need to manage cash in multiple banks and/or money market funds. With Citi’s new solution, institutional clients now have access to a more streamlined experience to help them diversify their counterparty risk and maximize returns with the added security provided by a depository solution.
“Citi is thrilled to be the first bank in the United States to launch this solution in partnership with IntraFi, one of the most innovative companies in FinTech cash management,” said Michael Berkowitz, chief liquidity management for North America at Citi’s Treasury and Trade. Solutions. “The new features will help our clients balance competing demands for return, risk management and day-to-day liquidity while simplifying the process of diversifying their exposure to counterparties.”
Available to Citi institutional clients with US-based accounts, the new solution offers several potential benefits, including:
- Competitive returns: Participating customers are compensated with returns competitive with similar day-to-day products
- Diversification: Deposits are split between banks in the destination banking network, providing greater banking diversification
- Operational efficiency: Customers can make deposits at any of the destination banks in the banking network, simplifying the process of diversifying their bank counterparties
- Daily liquidity: Deposits are accessible for same-day liquidity up to the redemption deadline, without being subject to redemption gates, fees or floating net asset values
- Capital preservation: Although not FDIC insured, funds are deposited with US branches of foreign banks, subject to Federal Reserve oversight
“IntraFi is thrilled to work with Citi as the premier provider of the Yankee Sweep solution,” said Mark Jacobsen, CEO and Co-Founder of IntraFi Network. “The new solution will give Citi the opportunity to offer customers even greater utility in managing their cash.”
Citi’s solution is currently available with expansion and enhancements planned throughout 2022. “We look forward to growing our network of destination banks to provide even more utility and choice to our customers,” Berkowitz added. .
With a strong background in transaction services, Citi has helped and advised clients through times of high growth and difficult times. Citi offers one of the most comprehensive liquidity management networks in the industry, supporting more than 30,000 regional and global liquidity structures for clients.
Citi’s treasury and trade solutions help clients succeed by providing an integrated suite of innovative and customized treasury management and trade finance services to multinational corporations, financial institutions and public sector organizations around the world. Built on the foundation of the industry’s largest proprietary network with banking licenses in more than 90 countries and globally integrated technology platforms, Citi’s treasury and commerce solutions continue to lead the way in delivering the industry’s most comprehensive suite of digital treasury, commerce and liquidity management. solutions.
About Citi
Citi, the world’s largest bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, businesses, governments, and institutions with a wide range of financial products and services, including personal banking and lending, corporate and investment banking, securities brokerage, transaction and wealth management services.
Additional information can be found at http://www.citigroup.com | Twitter: @Citi | YouTube: http://www.youtube.com/citi | Blog: http://blog.citigroup.com/ | Facebook: http://www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi.
About the IntraFi network
Chosen by thousands of banks since its inception (as the Promontory Interfinancial Network) nearly two decades ago, IntraFi Network has assembled the nation’s largest bank deposit network. Its solutions connect financial institutions of all sizes to help each build stronger relationships with customers, fund more loans, and diversify funding. As the nation’s leading provider of reciprocal deposit services and a leading provider of overnight and term financing options, IntraFi Network has the scale to be a strategic partner even for financing and management needs. capital of the largest banks, or for the smallest.
Additional information can be found at http://www.intrafi.com.
