COMMENTS: Citi Bank is launching an artificial intelligence automated robotic service that will receive payments and reconcile them with invoices. This is part of Citi’s US$ 8.5 Billion payment and receipt handling service that it provides to its clients all over the world under the name of “Cash Application” as part of its Treasury and Trade Solutions division.
Citi has launched this new service, called Citi Smart, in partnership with HighRadius, a Texas based fintech company and expects it to save 60 – 70% of the cost of manually reconciling payments and invoices, as well as speed up the collection processing which improves customers cashflow. A whole profession and its people are likely to soon become obsolete!
NEGATIVE FOR: For Accountants, bookkeepers. Also, negative for other banks and services companies that do not upgrade to such systems and lose their clients. However, it may take time (probably decades) before such a service spreads to the Third World. The benefits of such cost savings or speed of collection compared to Third World current salaries and operating costs may not make it imperative for them to apply it immediately. Especially, as such a service will not come cheap but will entail heavy costs and fees.
POSITIVE FOR: Big Western companies that will save and speed up collection. Also, for the Fintech IT business, as it is only matter of time before many cheaper, PC and smart phone similar applications, will emerge to provide the same tasks for small businesses.
IMPACT POTENTIAL: Medium
TIME SCOPE: Medium and Long Term