Citi Launches Deposit Sweep Plan
A press release entitled, "Citi Launches New U.S. Deposit Sweep Solution for Institutional Clients," explains, "Building on its history of innovation in cash management, Citi's Treasury and Trade Solutions today announced the launch of a new solution to allow institutional clients (Corporate, Public Sector, and Financial Institution) with U.S. accounts to sweep cash into demand deposit accounts at participating U.S. branches of non-U.S. banks. Offered via 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 enhanced yields. For treasury organizations, key aspects of effective liquidity management include managing risk, counterparty exposure, daily liquidity, and optimizing yield. In order to achieve these objectives, organizations would need to manage cash across 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 yields with the additional safety and security provided by a deposit solution." Michael Berkowitz, North America Head of Liquidity Management at Citi's Treasury and Trade Solutions comments, "Citi is pleased to be the first bank in the U.S. to launch this solution in partnership with IntraFi, one of the most innovative companies in the FinTech Liquidity Management space. The new capabilities will help our clients balance competing demands for returns, risk management, and daily liquidity while simplifying the process to diversify their counter-party exposure." IntraFi Network CEO Mark Jacobsen adds, "IntraFi is pleased to be working with Citi as the first provider of the Yankee Sweep solution.... The new solution will give Citi the opportunity to offer clients even greater utility when managing their liquidity."
