Roberto Mercadante

October, 2013

In its over 200

years of history,
Citi has always had
a very clear
mission:

TO DRIVE
PROGRESS

Drive progress

Contribution to the economic development

Around
the world
1812
City Bank
of New York is
founded

1886

1904

The bank
finances

The bank
The bank
finances the
supports the
Panama Canal construction of
the jet plane

the first
Transatlantic
Cable

1958

1977

2011

2012

The bank is a
pioneer in
ATMs

One of the first

partners of
Google Wallet

Completes
200 years
of history

Drive progress

Contribution to the economic development

And in
Brazil
1915

1970

1974

1977

The bank
arrives in
Brazil, with
branches in
Rio de Janeiro,
Santos and
So Paulo

The bank
launches the
first trainee
program
in Brazil

The bank
The bank
supports the works finances the
for the
construction
Rio Niteri
of the
Bridge and the
Itaipu Plant
construction of the
Imigrantes
Highway

2000

2010

2013

The bank
repositions
retail and
concentrates
on offering
premium
products
and services

The bank
completes
95 years
of presence in
the country

The bank launches

its first
Sustainability report
certified by
GRI

Citi is a
global bank,
with businesses
in + 160 countries
+ 1 thousand cities
200 million
client accounts
Cash withdrawal
in 120 countries
257 thousand employees
8.5 thousand service
points
2012

7.5 billion

US$
net profit

70.2 billion

US$
revenue

In Brazil, it's nearly 100

years connecting
the country to the rest of
the world through its
services
Founded in 1915
87 Citibank branches
6.4 thousand employees
Around
400 thousand client accounts
+ 1 million
credit cards
2012

737.2 million

R$
net profit

61.2 billion

R$
total assets

7.7 billion

R$
net equity

Citis Business Segments

CONSUMER
Complete bank services including
current accounts, investments, financing
and insurance, with the convenience of a global
bank. Issues and sells cards under the
Visa, Mastercard and Diners brands, being the
exclusive issuer of the latter.

CITI PRIVATE BANK

Access to a wide range of products
and services such as capital markets,
managed investments, portfolio management,
fiduciary planning and real estate.
Seeks investment opportunities
in the world's largest economies.

CITI COMMERCIAL BANK

Focusing on medium and large sized
companies, it stands out for its qualified
managers who contribute for the good
financial performance of clients.

CITI MARKETS
Expertise and technical knowledge
of one of the leaders of the
exchange market in Brazil. Through Citi
Corretora, it also acts as an intermediate
for operations at BM&F Bovespa,
with highlight on the largest operations
conducted in the capital market.

Citi Commercial Bank in Brazil

Challenges

Very competitive market segment

Increase market share and Client base in the

small and middle market segment

Increase sales force productivity (increase

revenue per sales manager)

Relationship Opening Process

The Problem to be solved
During
thethe
assessment
phase, we
discovered
the complexity
and inefficiency
of the to
relationship
Adopting
Client perspective
helped
reveal that
the Cycle Time
was the problem
be solved.opening
process.

Cycle Time

Channel
Account
40 Approval
DAYS
CreditOpening
Relationship
Process
Enablement
Opening
Numerous Client
signatures were
required

> 300 ACTIVITIES

Manual

Paper
documents
handling

Large percentage of
terms were rejected due
to data entry issues

Rework
Credit Analysts &
Sales Managers:

Systems
Agents
Areas
9

Countries, Continents

~ 50% of time
spent on
operational activities

Overview
End-to-end business process
The Credit Approval process (illustrated in the diagram below as Credit Proposal & Formalization) is the most
time consuming part of the value chain. An important stream of the Banco PJ initiative is intended to analyze
and improve this process resulting in business time to market & competitive advantage.

Macro-process to be
reengineered
Account Opening
Sales

Credit Proposal

Credit
Formaliza/on
Disbursement

Renewal

Credit Cycle

Macro-Process to be reengineered
Acct. Opening powered by TIBCO AMX BPM
Other Macro-Processes

Opera/ons

Metrics
The way to measure success
Metrics encourages improvement, effectiveness and appropriate levels of control. Thus, it establishes a
common language that facilitates the communication and reporting between the business and IT.

Account Opening
Sales

Credit Proposal

Credit
Formaliza/on
Disbursement

Renewal

Credit Cycle

Macro-Process to be reengineered
Acct. Opening powered by TIBCO AMX BPM
Other Macro-Processes
TIBCO AMX SpoFire coverage
Future waves

Opera/ons

Account Opening Implementation

Metrics
We cannot improve what we cannot measure. The reengineered process includes Real Time Business
Process Monitoring capabilities.

Old Process

After the fact Information

(Excel Spreadsheets)

Reengineered Process

Real time Business Process Monitoring

(TIBCO Spotfire)

Account Opening Implementation

Metrics
We cannot improve what we cannot measure. The reengineered process includes Real Time Business
Process Monitoring capabilities.

Old Process

Reengineered Process

After the fact Information

(Excel Spreadsheets)

Real time Business Process Monitoring

(TIBCO Spotfire)

Account Opening Implementation

Results
The diagram below illustrates the achieved cycle time results. This enables Citis Account Opening service
to be within the range of the best middle market Banks in Brazil.

Automate
Cycle Time Reduction

Productivity Increase
(Revenue per RM)

BPM
STD Dev Reduction Rejection Level Reduction

Account Opening Implementation

Imaging & Document Management
The transit of hundreds of pages printed daily is no longer required. The implemented image capture &
transmission capabilities allow the anticipation of back-office activities. Also, it provides customer
documentation management functions.

Old Process

Reengineered Process

Digitalized Customer
documents view

Customer documentation (Paper)

Citibank Global standard Scanner

located at the CCB branches

Account Opening Implementation

Resource & location strategy
The Banco PJ Account Opening process and technology architecture enable Citi to scale and benefit from
the most cost-efficient service centers around the world.
Account Opening Process
Front office
Back office

yo
ienc

ng
easi

Incr

Old Process

ffic
e
t
s
Co

fC

l Ba
a
i
c
r
e
o mm

nk

Acco

eni
p
O
unt

Delivered

Global-wide
Opportunity
Vision

Region-wide
Opportunity
Vision

Reengineered Process

ng

ice
serv

Banco PJ Governance Model

The established Governance Model enabled Banco PJ Sponsors to continuously monitor business
processes improvements: from identified opportunities through achieved business results.
Sponsors Steering Committee
Decisions and Directions

Business Operational Committee

Decisions and Directions

Progress Reporting
Business Benefits achieved
Issues & Risks

Projects
Committees

Demand
Management
Technology
Architecture
Progress Status
Planning
Guidelines/Standards
Issues

Program
Management

Banco PJ
Management

Benefits
Management

Processes
Committees

Change
Management

Metrics (KPIs, SLAs)

Process Improvements Opportunities
Issues

Banco PJ Relationship Opening

Delivered Capabilities & Benefits

Customer
Cycle Time Reduction
RM Productivity Increase
Standard Deviation Reduction
Rejection level Reduction
Business Activity Monitoring
Customer Document Mgmt
Integration Services
Imaging & Transmission Services
Workflow processing
Data consistency/checking
Modularization
Security Services

Time

to Market

Customer
facing
time increase
Relationship
Manager
availability
Process
standardization
Predictability
Rework
Stress &avoidance
conflict avoidance
Instant
business
Traceability
Readiness

decision response

to offer
services
& products
applynew
for new
services
& products

Operational
risk mitigation
Information consistency
Deployment
to all/ locations
Service flexibility
Agility
Service

consistency

Trustworthiness
Process

standardization

Reliability
Credibility

(despite infrastructure limitations)

Banco PJ Relationship Opening

New capabilities moving forward
Support new regulatory demands (FATCA)
Foreign Account Tax Compliance Act (FATCA)

Expand legacy systems integration

Leverage application/infrastructure services
Enable Mobile computing capabilities
Note: pictures were taken from the testing environment

Human performance
Bring the Customer relationship opening process management
capabilities to the next level

Relationship Opening process

continuous improvement

Supporting slides

Roberto Mercadante
October, 2013

Relationship Opening
Business Process Mapping & Validation

Business Process Modeling & Simulation

Credit Approval Process Assessment
To be process simulation
Analysis of cycle time, Bottlenecks, idle time, and
capacity required

Capacity Analysis
Reduction
of 66%

Reduction
of 44%

Business Process Management

Account Opening Architecture Landscape

TIBCO Forms

TIBCO AMX BPM Spotfire

Business Process Services (Workflow)

TIBCO AMX BPM Server

SOA Layer

TIBCO SOA Product Suite

Integration Services

TIBCO Enterprise Messaging Services

Image Capture & Transmission

ECM Services

Image Capture & Transmission Services

Content Management Services

Image Capture Services

Transmission Services

IBM FileNet

Security Gateway

Security Services

TIBCO Business Events Server

TIBCO AMX BPM Spotfire
Monitoring & Management

Metrics / Process Monitoring Services

TIBCO Business Studio

Process Design &

Rapid Application Development

Business Rules Services

TIBCO Hawk

User Interface Services

Metrics / Analytics Front-End

Real-Time / Historical
Monitoring & Analysis
BPM Application Monitoring Services

Account Opening Architecture Landscape

Banco PJ Infrastructure Layers

Data Center
System
Application
Software
Software
& Hardware Infrastructure (Production
& COB)

Business
Process
Mgmt
Service Oriented
Arch. Services
2
Data Centers
(Banco
PJ &S ervers/Storage
systems)
Troduc/on
IBCO
PlaForm
3.1.5 HF07
edhat ALMX
inux
5 (2.6.18-238.45.1.el5)
PR
Tusiness
IBCO
AMX
BRPM
HF03
RACLE
1C1g
2 1.3.1
BO
on/nuity

TIBCO MUIPT 2.1.0
Business
A(cBvity
Monitoring Services

52
Servers
All environments)

T
IBCO
B
usiness
W
orks 5.7.1 HF02

Redhat Linux 5 (2.6.18-238.45.1.el5)
Business PArocess
cBvity M
Mgmt
onitoring
Services
Business
& Service
Oriented
MS Windows
Server
2k8R2
Std x64
Ed SP1 Arch. Services
Tigh
IBCO
SpoFire Server
HO
Availability
RACLE
11g R2 & Fault Tolerance
IBCO M
SpoFire
Professional
ATc/ve
onitoring
& Veritas CClient
luster
ORACLE RAC

Enterprise
Content
gmt & Services
Business AcBvity
MM
onitoring
Image
Capturing
Services
Real-/me
Dashboards
& Trend Analysis
F RACLE
RileNet
edhat R
Image
LAC
inux S5ervices
(2.6.18 238.45.1.el5)
O
e M
Copy
S WSindows
hareScan
Server
Element
2k8R2 Std x64 Ed SP1
e ECopy
MC2 SShareScan
torage System
Quick Connect

Enterprise Content Mgmt / Image Capturing Services / Storage Systems

Image Capturing & Recovering

Account Opening Process

Information Systems Integrations

Delivered
Opportunities

Account Opening Process

Implementation Model

USA

TIBCO AMX Project Team Management

Global/Regional Technology Architecture Team
Data Center / Servers infrastructure
IT Operations
TIBCO AMX Technical Support

India
Development Team
Unit Testing
Development Servers

Brazil

Steering Committee
Banco PJ Program Management
Business Process Modeling
Specification Team
Change Management
Integration Testing Team
Local Technology Infrastructure Teams
Imaging infrastructure

Philippines
Operations (Global Accounts)

Account Opening Process Dashboards

Summary
1

Process Owner
Finalized
Process
Cycle Time

Managers

Undergoing
Processes

Workload
Forecast

Team Leaders

Finalized
Processes

Analytics

Operations / Channels / Compliance / Business Support / Legal / Products / Cash / Fraud Prevention

Finalized
Processes
per Area

Undergoing
Processes

Undergoing
Processes

RM
Undergoing
Processes

Analytics

Account Opening Process Dashboards

Summary
The initial set of the established dashboards was a result of several discussions and workshops with CCB
Managers and back-office operational areas. New dashboards can be defined as the business process
views mature and end-users experience increases with this powerful environment.

Business Process Monitoring:

View real time business processes information
Identify business process bottlenecks
Measure SLAs for working cells & service providers
Support analytics (Ex: rejection causes, statistics)
Generate information for Areas/Individuals Accountability
Generate the baseline information for business process costing

Business Process Monitoring

Process Owner Real Time Information Dashboard
Acct Opening
Processes Aging

Aging

Total ?me incurred

Agent SOEID

Queue

CCB Pla'orms / Areas

Customer
Name

Number of processes

Time spent on the ac?vity

Ac?vity being executed

Filters

Banco PJ Relationship Opening

Best Practices & Lessons Learned Highlights

Best Practices:
Adopting the ultimate Client perspective helps reveal the
problem to be solved
The business process Metrics are essential to define success

Lessons Learned
Recognize mistakes
Observe what works
Document them
Share them

Prototyping reduces communications gaps

The Business Process Simulation is a smart approach to
support your projections
Establishing the Process Owner role and a Governance Model
to drive business process continuous improvement is essential

Lessons Learned:
Human performance is an essential part of the transformation
process and it requires a lot more attention than the ordinary
training sessions
Disseminate the differences between BPM and Workflow at
different levels
Mind the gap between the business process modeling and the
functional requirements definition

Establish a continuous
communication link throughout the
project between the end-users groups
and the project team
Establish a Governance model up
front with clear roles & responsibilities