Business brief Public sector bodies as well as individuals can make use of cards, such as for paying suppliers using procurement cards. Policies can be defined and enforced, and card usage is supported with detailed information and automated processes. Emergency procurement cards have a major role during crisis situations, enabling governments to respond quickly with rapid procurement of supplies and services without compromising financial transparency or integrity.
Enabling Transformation in Public Sector Financial Management Filippo Sabatini, Global Transaction Services Public Sector Head Citi
A major focus for both G20 governments and the World Bank is the rollout of effective and transparent governance models, best practices in operational efficiency and optimisation of treasury activities. At Citi, we actively support government and public sector bodies through our skills, expertise, regional presence and comprehensive spectrum of banking solutions. These are enabling a growing number of local and national governments globally to enhance efficiency and control, reduce costs, increase financial transparency and build public confidence. Global Financial Challenges Government entities and agencies have huge challenges in automating payments and collections, particularly in countries where financial exclusion is high. Volumes can also be enormous, from taxes and utility payments, to social benefits and salaries. Paper and cash remain the two greatest barriers to achieving efficient financial processing. Transporting and issuing cash payments bring significant risks including lack of control, potential for fraud, error and theft. Cheques also bring considerable challenges as they are costly and time-consuming to produce, the value date is unpredictable, and auditability is low.
Pioneering Mobile Technology Increasingly, governments and citizens are leveraging mobile telephony e.g. for automating low value payments such as parking charges, public transport costs etc. In countries with a large unbanked population, the opportunities are even greater. In Kenya, for example, where fewer than 20% have bank accounts, mobile money enables individuals to pay and be paid electronically securely and conveniently without the need for a bank account. We worked with Vodafoneâ€™s Kenyan affiliate Safaricom to enable M-PESA as payments and collection channel for our corporate and public sector clients. Around 60% of payments nationally are now transacted through M-PESA, with similar solutions now being rolled out to other parts of Africa. Good Governance By demonstrating transparent financial processes and decision-making, public sector bodies can build public trust and are in a better position to manage and plan their financial requirements. From cashless hospitals in Mexico to electronic tax and fee payments in Mumbai and state-of-the-art asset management in Chicago, Citi is helping to create the cities, states and countries of the future, with the transaction, document and identity management tools that benefit citizens and enhance financial transparency.
Sponsored by ÂŠ 2012 Citibank, N.A. All rights reserved. Citi and Arc Design is a registered service mark of Citigroup Inc.
Digitising Payments Automated payments, combined with sophisticated document management and identity management systems, enable governments globally to improve efficiency, security, convenience, cost control and stakeholder confidence. One example is the use of prepaid cards. These are prefunded cards (either physical or virtual) with the value stored on a server-based electronic account as opposed to a bank account. Cards can be used for one-off amounts, (e.g. tax rebates, grants or student loan payments) or make regular payments (e.g. employee expenses, pensions, social security or benefit payments). Cash is held securely with immediate access to funds, unlike cheques, with full information and assistance available to card holders. OECD Yearbook 2012 ÂŠ OECD 2012
2012 OECD Yearbook