Citizens Bank Overhauls Treasury Systems for Instant Payments
Treasury systems are struggling to keep up with the speed of modern payments. Companies can send money instantly, but tracking and managing these transactions remains a challenge. Treasury teams often juggle multiple accounts, banks, and payment providers, relying on technology that does not always communicate effectively.
Citizens Bank’s Infrastructure Overhaul
Citizens Bank is addressing this issue by revamping its open banking framework. In 2023, the bank began replacing its outdated APIs with a unified system, aiming to streamline commercial banking connectivity. This new framework, built on Financial Data Exchange (FDX) standards, launched in beta in mid-2024 and is set for full release in Q1 2025.
The API’s multiplexing architecture identifies users, accounts, and permissions, enabling fintechs, ERP systems, and platforms to connect via a single interface. Citizens reports significant improvements, with onboarding times reduced from weeks to minutes and a 96% drop in legacy screen-scraping traffic. The API handles millions of daily permissioned calls, serving thousands of business clients across various divisions.
Real-Time Finance and Gen Z Expectations
As real-time payments become standard, expectations are shifting. Younger professionals, accustomed to consumer financial apps with instant updates, are driving change in treasury. Michael Cummins, Head of Treasury and Payments Solutions at Citizens, notes that the API has accelerated feature rollouts and simplified platform integration.
The bank is expanding the API’s capabilities to include enriched transaction data, account activity, corporate loans, and cards. However, improved connectivity is just one aspect of the transformation. Paul Margarites, Head of Product Solutions for Treasury and Wholesale Payments, highlights Gen Z’s role in pushing treasury toward real-time finance.
When instant transactions become the norm, speed is no longer a differentiator. Treasury is then judged on the functionality and visibility surrounding payments. This shift may lead to a reevaluation of treasury’s role, focusing on seamless operations and complete transaction insights.
As younger workers bring their expectations to the workplace, treasury teams may need to adapt quickly. The challenge lies in meeting these demands while ensuring stability and security in an increasingly fast-paced financial environment.
Citizens’ API is a step toward this future, but the industry’s evolution will likely require further innovation. Treasury’s next phase may involve not just faster payments but also enhanced transparency and control, reshaping how financial professionals manage transactions.
