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Tag: citibank

  • Steal Citigroup’s AI Training Rule to Ensure Successful Adoption at Your Company

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    As AI capabilities evolve swiftly and continuously, some big corporate names are weaving the technology deeply into their day-to-day operations. Salesforce is a leading example, with the sales software company already claiming it’s saving it $100 million a year. But report after report suggests that few of these AI integration efforts include one final, critical step like the one the global bank Citigroup is taking. It’s now mandating that most of its workers learn how to properly prompt AI systems.

    The decision was announced last week in a LinkedIn posting from the bank’s head of technology and business enablement, Tim Ryan, HRDive reports. AI prompt training is now required for all workers who can access the bank’s AI tools — about 180,000 people. Apparently, if you’re already well versed in AI prompts, the training will last only about 10 minutes, and beginners should expect it to take about 30 minutes. That’s not much time, but the training is clearly not intended to be comprehensive or a deep dive, which would waste hundreds of thousands of hours of workers’ time. Citi’s approach is to give everyone a light introduction that boosts the average employee’s ability to use AI.

    The bank reportedly doesn’t require its staff to use AI, in contrast to other AI integration efforts — in April 2024, for example, Moderna’s CEO hit the headlines when he told staff he expected them to use AI at least 20 times a day. Citi’s intention is to make the most of AI’s promise to tackle basic mundane tasks and free workers up to work on more productive parts of their jobs. The system has been prompted over 6.5 million times during 2024, Ryan said. That would equate to about 36 prompts for every employee.

    Prompt engineering is at heart a simple idea: it’s learning how to choose and then reshape the questions you ask of an AI chatbot in order to steer it toward producing exactly the responses you need. Think of it as being like tasking an intern to build, say, a template Powerpoint presentation for you — give them a general idea, then look at their first effort and refine your instructions so they ultimately include all the elements you’d like. AI tools require a similar process, and sometimes requires the user to provide very carefully chosen language. 

    For some experts, prompt engineering could morph into a whole career, and prompting may become as much a part of the average workday as sending emails or Slacking your coworkers. Earlier this year, Slack’s chief marketing officer predicted that staff would soon be talking with AIs in the office more than they talk to their colleagues.

    This may seem like a bleak future, but it’s undeniable that learning to properly use an AI system is one way to ensure your company sees a return on its new, buzzy tech investment. But many reports suggest that when companies roll out AI they simply aren’t informing their staff how and when to use it, nor offering appropriate training. At best this means leaders may be missing out on some of the worker efficiency and productivity boosts that the tech can offer, and at worst it could lead to a one of their employees leaking sensitive company information out by say, entering secret fiscal data into a third-party AI system.

    What’s the lesson here for you and your AI-using workforce?

    It’s simple. If you haven’t already invested in some training time, you should. AI is already powerful enough to simplify certain tasks, and as AI agent technology improves it can even take on typical time-munching office tasks like automatically filling in digital timesheets or helping workers file expenses claims — necessary, but unproductive uses of their precious work hours. 

    The other thing to remember is that AI training shouldn’t be a one-shot affair. The tools are advancing so quickly that you should plan a regular schedule to refresh your workers on the latest tools that are on offer.

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    Kit Eaton

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  • Judges side with Trump EPA over canceled Inflation Reduction Act grants to nonprofits | TechCrunch

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    The battle over $20 billion worth of climate-related funding authorized by Congress continues as an appellate court ruled on Tuesday in favor of the Environmental Protection Agency, which had terminated Biden-era grants made to nonprofits.

    The legal tussle stems from EPA administrator Lee Zeldin’s decision to cancel grants dispersed as part of the Inflation Reduction Act. Zeldin said that the grants did not match the EPA’s current priorities and claimed, without evidence, that he had concerns about fraud.

    A district court had previously ruled that Zeldin’s actions were “arbitrary and capricious.”

    The two majority justices, both Trump appointees, wrote that Zeldin’s cancellation of the contracts was valid and that the government “must ensure proper oversight and management” of the grants. They cited in support of their decision an undercover video taken by Project Veritas, a conservative activist group that releases deceptively edited videos.

    In March, court filings revealed that the EPA along with the FBI and the EPA inspector general had instructed Citibank to freeze money that had already been placed in accounts controlled by the nonprofits. The money was largely to be used for loans, which would be paid back and reused.

    The grants in question were awarded to a range of nonprofits, including Climate United and Power Forward. At the time of the March hearing, Climate United had committed to $392 million in projects based on the money in its accounts, including $63 million for solar power developments in Oregon and Idaho and another $31.8 million in solar projects in rural Arkansas. Power Forward had committed $539 million and said the freeze left it unable to pay contractors’ outstanding invoices.

    Zeldin had claimed that fraud was one of his main concerns, though a lengthy investigation by the interim U.S. attorney in Washington, D.C., failed to turn up any meaningful evidence, according to a report in The New York Times.

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    Perhaps as a result of a lack of evidence of fraud, EPA arguments before the appeals court focused on the contractual nature of the grants. The majority of justices agreed that the matter should be heard by the U.S. Court of Federal Claims, not the broader federal judiciary.

    The dissenting justice, an Obama appointee, said that the EPA “has no lawful basis — nor even a nonfrivolous assertion of any basis — to interfere with funding that, pursuant to Congress’s instructions, already belongs to Plaintiffs.”

    The plaintiffs are likely to appeal to the U.S. Supreme Court. If they fail there, the EPA could still be liable for billions of dollars, according to legal analysis by its own attorneys.

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    Tim De Chant

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  • First Abu Dhabi Bank, Mizuho Bank in race for SBI’s stake in Yes Bank

    First Abu Dhabi Bank, Mizuho Bank in race for SBI’s stake in Yes Bank

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    Within days of State Bank of India putting its 25 per cent stake in Yes Bank on the block, interest is visible from West Asia and Japan.

    According to four bankers aware of the matter, UAE’s largest bank, First Abu Dhabi Bank (FAB), and Japan’s leading lender, Mizuho Bank, have shown interest acquiring SBI’s stake in Yes Bank.

    While NBD Emirates, also headquartered in the UAE has evinced interest in YES Bank, FAB and Mizuho are said to be leading the race.

    Discussions with RBI

    It is gathered that Mizuho Bank has appointed Bank of America to run the deal. FAB has had a few rounds of discussions with the Reserve Bank of India on the acquisition under various structures.

    The mandate to find a buyer for SBI’s shares has been given to Citibank and, according to sources, the investment bank is reaching out mainly to large foreign investors. “A key directive given to the investment banker is that the deal should fetch top dollar foreign direct investment into the banking space,” said a banker aware of the development.

    Also read: Kotak Mahindra Bank: Shedding the underperformer tag may be a tough task

    At present, no domestic investor or foreign private equity fund has been approached.

    Emails to SBI, Yes Bank, FAB and Mizuho Bank remained unanswered till press time.

    Contours of deal

    According to latest shareholding pattern of Yes Bank, SBI holds 25.02 per cent. Interested investors have been asked to consider three options vis-a-vis SBI’s stake — take the 26 per cent stake; go up to 49 per cent which would involve making an open offer after taking over SBI’s stake; and, last, if the investor is keen on a simple majority shareholding of 51 per cent, apply to the Reserve Bank of India.

    Also read: AU SFB to explore universal bank conversion

    The RBI’s 2016 master direction on ownership in private sector banks allows foreign investment from all sources, that is, FDI, foreign institutional investors, and non-resident Indians, up to 74 per cent of the paid-up capital.

    FAB and Mizuho Bank have branch operations in India. They operate in corporate finance and global transaction banking, catering to large overseas corporate customers. However, globally, FAB and Mizuho are known for their retail banking strengths and FAB specifically for its credit card products.

    YES Bank bailout

    To put things in perspective, in March 2020, SBI led the consortium of banks that bailed out Yes Bank when it was placed under moratorium. SBI picked up 48 per cent, while HDFC Ltd and ICICI Bank took 10 per cent each with Axis Bank, Kotak Mahindra Bank, IDFC First, Federal Bank and Bandhan Bank picking up smaller stakes. Collectively, the eight banks held about 75 per cent in Yes Bank.

    According to the latest stock exchange data, apart from SBI, Axis Bank, Kotak Mahindra Bank, ICICI Bank and HDFC Bank together hold 7.7 per cent in Yes Bank.

    Yes, there’s much interest!
    • UAE’s First Abu Dhabi Bank and Japan’s Mizuho Bank said to have interest to acquire SBI’s 25% stake in Yes Bank
    • Citibank handling the mandate to find buyer for SBI’s stake
    • I-bank presently reaching out to large foreign investors for this purpose
    • Interested investors asked to consider three options:
    • Acquire 26 per cent stake in Yes Bank
    • Increase stake to 49 per cent stake through open offer
    • Seek RBI okay to acquire 51 per cent stake in Yes Bank

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  • Citi TTS taps Icon Solutions for payments platform | Bank Automation News

    Citi TTS taps Icon Solutions for payments platform | Bank Automation News

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    Citi Treasury and Trade Solutions invested in payments fintech Icon Solutions last week to modernize its core payments capabilities and expand its payments offerings.   Citi TTS, the global banking arm of the $1.6 trillion Citibank, plans to use Icon Solutions’ technology to modernize its core payments capabilities globally, including Automated Clearing House payments, wires and […]

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    Vaidik Trivedi

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  • Citi taps Traydstream for document processing | Bank Automation News

    Citi taps Traydstream for document processing | Bank Automation News

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    Citibank is looking to reduce manual processing risk and costs by utilizing document processing company, Traydstream to automate document information processing and document creation.  “The reliance on paper in the trade industry needs to reduce and we see the next few years to be transformative for the business as we make our industry more environmentally […]

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    Vaidik Trivedi

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  • RBI imposes monetary penalty on Citibank, BoB and IOB

    RBI imposes monetary penalty on Citibank, BoB and IOB

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    The Reserve Bank of India (RBI) has imposed a monetary penalty aggregating ₹10.34 crore on three banks —Citibank NA (₹5 crore), Bank of Baroda (₹4.34 crore) and Indian Overseas Bank (₹1 crore) —for non-compliance with some of its Directions.

    RBI said the examination of Citibank’s Risk Assessment report/Inspection report about Statutory Inspection for Supervisory Evaluation (ISE 2021) and all related correspondence in that regard, revealed, inter alia, contravention of the provisions of the BR Act and non-compliance with its directions on ‘Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks read with Know Your Customer (KYC) Direction, 2016’.

    The central bank, in a statement, said Citibank (i) failed to credit the eligible amount to the Depositor Education and Awareness Fund within the prescribed period, (ii) paid remuneration in the form of commission to its certain staff members and (iii) outsourced monitoring and disposal/closure (decision-making function) of AML (Anti-Money Laundering) alerts to a Group company.

    Consequently, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the said directions, as stated therein.

    Also read: RBI imposes ₹1 crore penalty on Union Bank

    “After considering the bank’s reply to the notice, additional information provided by the bank and the oral submissions made during the personal hearing, RBI came to the conclusion that the aforesaid charge of contravention of the provisions of the BR Act and non-compliance with RBI directions was substantiated and warranted imposition of monetary penalty,” RBI said.

    Bank of Baroda

    RBI said examination of BoB’s Risk Assessment Report/Inspection Report pertaining to ISE 2021, and all related correspondence in that regard, revealed, inter alia, non-compliance with its Directions on ‘Creation of a Central Repository of Large Common Exposures Across Banks’, ‘Central Repository of Information on Large Credits (CRILC) – Revision in Reporting’, ‘Loans and Advances – Statutory and Other Restrictions’, and ‘Reserve Bank of India (Interest Rate on Deposits) Directions‘.

    The central bank, in a statement, said BoB failed to ensure accuracy and integrity of data on large exposures submitted to RBI with respect to some accounts; sanctioned a term loan to a Corporation (a) in lieu of or to substitute budgetary resources envisaged for certain projects; (b) without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations; and (c) the repayment / servicing of which was made out of budgetary resources.

    Also read: bl explainer: What RBI’s increase in risk weights mean to the borrower?

    Further, RBI said, the public sector bank sanctioned a working capital demand loan to a Corporation against amounts receivable from government by way of subsidies, and did not pay interest rate on the deposits accepted from senior citizens, as per the schedule of interest rates disclosed in advance.

    Consequently, a notice was issued to the bank advising it to show cause as to why penalty should not be imposed on it for failure to comply with the said directions, as stated therein.

    “After considering the bank’s reply to the notice, and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty,” RBI said.

    Indian Overseas Bank

    RBI said examination of IOB’s Risk Assessment Report/Inspection Report about ISE 2022, and all related correspondence in that regard, revealed, inter alia, non-compliance with its Directions on ‘Loans and Advances – Statutory and Other Restrictions’

    The central bank said IOB sanctioned term loans to two Corporate entities (i) instead of or to substitute budgetary resources envisaged for certain projects; (ii) without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations; and (iii) the repayment/servicing of which was made out of budgetary resources.

    Further, the public sector bank sanctioned a term loan to another Corporate entity (i) without undertaking due diligence on the viability and bankability of the projects to ensure that revenue streams from the projects were sufficient to take care of the debt servicing obligations and (ii) the repayment/servicing of which was made out of budgetary resources.

    Consequently, a notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the said directions, as stated therein.

    Also read: RBI imposes ₹5.39-cr monetary penalty on Paytm Payments Bank

    “After considering the bank’s reply to the notice, and oral submissions made during the personal hearing, RBI came to the conclusion that the charge of non-compliance with the aforesaid RBI directions was substantiated and warranted imposition of monetary penalty,” RBI said.

    In all three cases, RBI said its action is based on the deficiencies in regulatory compliance and is not intended to pronounce upon the validity of any transaction or agreement entered into by the bank with its customers.

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  • Citi selects Akamai to fight bot | Bank Automation News

    Citi selects Akamai to fight bot | Bank Automation News

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    Citibank has selected Akamai Technologies, a cloud-native security service provider, to fight fraud on its platform, according to BuiltWith, which tracks technology adoption and use among websites.   Akamai “helps financial institutions manage financial aggregators, protect against malicious bot attacks and protect customer trust,” an Akamai spokesperson told Bank Automation News. The Cambridge, Mass.-based fintech serves […]

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    Vaidik Trivedi

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  • Citibank adds tech personnel | Bank Automation News

    Citibank adds tech personnel | Bank Automation News

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    Citibank is investing in technology and automation to modernize its security infrastructure, enhance client experience and improve its data structuring.  “We’re deep into the large body of work of automating manual controls and processes, consolidating fragmented tech platforms and upgrading our data architecture,” Jane Fraser, chief executive at Citibank, said today during the bank’s third-quarter […]

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    Vaidik Trivedi

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  • Syndicated loan platform expands | Bank Automation News

    Syndicated loan platform expands | Bank Automation News

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    Citizens Bank plans to join syndicated loan platform Versana in the first half of 2024 to expand its credit reach.  Syndicated loans can range from hundreds of millions of dollars to billions of dollars, and partnering with other banks can help finance deals, Jo Wyper,  head of commercial banking digital and operations at Citizens Bank, […]

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    Vaidik Trivedi

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  • Citi sells China wealth business to HSBC | Bank Automation News

    Citi sells China wealth business to HSBC | Bank Automation News

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    Citigroup will sell its consumer wealth portfolios in China to HSBC for $3.6 billion, the bank said Monday.   The sale, which includes Citi’s clients, assets under management and deposits is part of the bank’s plan to wind down its consumer banking business in China as part of its broader restructuring, Citi said in an Oct. […]

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    Vaidik Trivedi

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  • Edward Jones taps Citi for BaaS | Bank Automation News

    Edward Jones taps Citi for BaaS | Bank Automation News

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    Wealth management company Edward Jones selected Citibank on Aug. 15 to provide bank accounts to its more than 8 million clients.  The St. Louis-based company will also integrate Citi Alliance, the bank’s lending service, into its platform to provide loans to its customers, according to an Edward Jones release.  “Citi has an industry-leading lineup of […]

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    Vaidik Trivedi

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  • Citi offers Venmo payments feature | Bank Automation News

    Citi offers Venmo payments feature | Bank Automation News

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    Citigroup is investing in alternative payment methods as client needs and technologies evolve. The goal is “making sure that our payment stack is future-ready,” William Artingstall, global co-head of cross-border payments and receivables at Citi, told Bank Automation News.  For example, in March, the $2.4 trillion bank integrated Venmo into its global payment platform, Worldlink, […]

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    Whitney McDonald

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  • PayPal to launch AI-driven assistant | Bank Automation News

    PayPal to launch AI-driven assistant | Bank Automation News

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    PayPal is investing in AI to increase efficiency, improve consumer experience, reduce the time to bring products to market and develop proprietary AI models to drive business growth.  The payments processor has experienced early success in working with AI and has launched more than 300 experiments with the tech in the first half of the […]

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    Vaidik Trivedi

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  • Q2 earnings roundup | Bank Automation News

    Q2 earnings roundup | Bank Automation News

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    Financial institutions looked to automation in the second quarter to reduce costs and create more efficient operations.  The $3.2 trillion Bank of America, for one, saw its Q2 noninterest expenses increase by 5% year over year to $16 billion. U.S. Bank, Goldman Sachs and Wells Fargo increased their tech spends while BNY Mellon grew its […]

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    Vaidik Trivedi

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  • State Street ups tech spend by 3% YoY | Bank Automation News

    State Street ups tech spend by 3% YoY | Bank Automation News

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    State Street Corp. looked to optimize savings and operational productivity through technology and automation in the second quarter. The $295 billion bank is “carefully investing in strategic elements of the company, including Alpha [its portfolio management technology arm], private markets, technology and operations, automation,” Eric Aboaf, chief financial officer at State Street, said during the […]

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    Vaidik Trivedi

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  • Citi doubling down on automation | Bank Automation News

    Citi doubling down on automation | Bank Automation News

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    Citibank is ramping up its automation efforts and modernizing its platforms to maintain competitiveness and drive down costs. The $1.7 trillion bank increased its technology and communications spend 12% year-over-year in the second quarter to $2.3 billion, according to Citi’s earnings supplement.  Spending will continue to climb, Chief Financial Officer Mark Mason said during the […]

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    Vaidik Trivedi

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  • Digital dollar speeds payments | Bank Automation News

    Digital dollar speeds payments | Bank Automation News

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    The New York Federal Reserve along with financial institutions including Citibank, HSBC, Wells Fargo and Mastercard ran a 12-week pilot to test the feasibility of settling payments through a digital dollar on a distributed ledger system, finding that a digital dollar can make cross border payments available faster and around the clock. The Fed’s New […]

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    Vaidik Trivedi

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  • Citi Debuts Digital Banking Platform | Bank Automation News

    Citi Debuts Digital Banking Platform | Bank Automation News

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    Citigroup launched a digital platform for its commercial banking clients today as it continues to build out its digital offerings. The $2.4 trillion bank’s CitiDirect allows commercial banking clients to gain a consolidated view of their Citi banking relationship, with access to liquidity, exposure, trade and FX positions through side-by-side comparisons, delivering key data that […]

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    Vaidik Trivedi

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