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Today’s top most international concerns will be resolved within cities … the opportunity for commercial partnership is endless. David Miller World Bank Advisor on Urban Issues Former Mayor of Toronto The Megatrends Driving Change

Globalization.  Business – big or small -- is conducted across borders with the help of new technology structures.  Consumers have multinational ambitions – eg. international students, world travellers, the pursuit of medical care abroad.  We have unprecedented access to people, news, ideas and opportunities.

Urbanization.  Rapid population growth will require significant infrastructure investment; fiscal constraints in developed markets will require more efficient administration  Explosive economic growth in the developing countries owing to new sources of economic productivity will see the creation of a new affluent middle class.

Digitization.  We can obtain capital, make purchases and find investments in a record number of ways through new business models, technology platforms and funding solutions.  We can fulfil our needs more accurately, quickly and cost-effectively via client experiences delivered through new platforms and channels, eg. online, mobile. Socio-economic mega-trends are shaping our future …

Power is shifting to The un-/ under-banked are consumers as social media becoming banked gains influence in new ways

Technology and infrastructure Public Sector is reforming are increasingly regulation and pressing for flexible electronification Urbanisation: 21st Century; the Urban Age

The world is no longer a network of countries – it is a network of cities.

Why Do Cities Matter? “Currently, the world’s top 30 cities Expected Population Growth  Technology is interconnecting generate 80% of the world’s wealth.” economies The Urban Age

 The complexity of cities require 9.3bn integrated yet dynamic solutions “For the first time in history more 6.9bn than 50% the earth’s population live  Power is Shifting to Consumers as in cities – by 2050 it will be 75%.” Social Media Gains Influence The Endless City 2010 2050 World World Population Population (1)

What we think about Urbanisation… Urban and Rural Populations (Billions) Evolution

 A tipping point - The percentage of the world’s population in urban locations now exceeds that in rural areas.

 Urban residents are generally better educated, more productive and have higher incomes compared to their rural counterparts.

 Many developed economy cities have comparative advantages in certain sectors. Urbanization will result in a larger global market for these services.

(1) United Nations, 2010 Revision of World Population Prospects, May 2011 The demand of cities today …

… to solve urban challenges The Urban Ecosystems

Cities Vision Efficient Cities Empowered Citizens Connected Cities Competitive Cities Sustainable Cities

Delivering Services across the ecosystem that work for Citizens

POLICY & ADVISORY

CITY ADMINISTRATION • Mayor’s Office • Municipal Council CEO • City Treasurer • Dept of Finance • Dept of Operations • Procurement • Regeneration & Development • Pension administration

URBAN ECOSYSTEMS •Social Services • Safety ••• Energy & Utilities • Regeneration & Development ••• Roads & Transit ••• Workplace and Education ••• Healthcare • Ports of Entry Cities are facing profound challenges

What is driving change?

‘Old’ cities in the Fiscal Crunch developed world Driving the search for cost and operating efficiency • Crippling pension obligations Population Growth • Budget deficits Driving the modernization and extension of public services and • Decentralized financial infrastructure processes; limited automation Labour and pension costs • Limited ability to cut costs Driving the quest for process centralization and automation • Supply chains at risk Technology advances changing lifestyles ‘New’ cities in the developing world Citizens are demanding greater empowerment and convenience • Explosive population growth and urban The competition for human capital migration Providing the impetus to modernize and provide lifestyle and business • Rapid urbanization incentives to attract talent to key cities, and to promote a culture of • Need to establish or innovation that is self-sustaining modernize infrastructure • Quality of life Private sector participation • Entrepreneurship Public-private partnerships are key to driving progress and ensuring the transfer of competitive best practice to the public sector Additional Challenge – Implementing Sustainable Solutions At a time of fiscal restrictions, local governments are being tasked to implement sustainable solutions.

“The task of creating the tools, systems, energy sources and ethics that will allow the planet to grow in cleaner, more sustainable ways, is going to be the biggest challenge of our lifetime” 8 Citi For Cities …

….Partnering for urban sustainability Powering the cities of the future, today. Delivering solutions that enhance public services, facilitate commerce and empower citizens living in the world’s great cities.

9 Efficiency Analysis: How Does a City Function? City Administrators understand the physical flows within their cities

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[?]A N B G R L Canal Navigations A E Norton Canos N S C E H Y

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Kingstanding Autherley Jn ON S Sneyd Jn E GT IN SS W & Sutton New Hall E & & E Y Ajdersley Jn EY E Aldridge L L Wolverhanpton YR R W Y S Locks W C R [?] End O [?] Jn W & Wednesfield Jn S Longwood Jn Tyburn F Walsall Locks F A T WALSALL and East Handsworth S WOLVERHANPTON [?] Field Jn TOWN [?]

B IR M LL Rushall Locks I A N LS G Bilsten A H W Soho L A A M [?] H P W C S O A A O U L L N S R K L A DA A Miles 0 3 L ] L and [? L [?] Yardley North [?] Jn LEY VAL Rushall Jn Kms 0 5 ME Main 15M Bradey Workshop TA Live 24L [?] [?] MILL T Sheldon AM [?] Tnl 380yds FactoryTUNNEL Ryder’s Green E Spark Brook W VA Quinton BRANCH Y Locks L [?] E L Hardborne O O EY Factory Jn L N D Purry Barr E ] S [? H Locks Tipoon Jn Dudley B NC Acocks U RA Purry Barr and Springfield R B Green Port Jn Ryder’s Green Jn WEST BRONWICH Dudley Tnl 3154yds [?] Grevely Hil (no engines) Pudding Green Jn Salford Jn Weoley Brades Jn Dudley & Locks Spon Lane Locks AM Netheroon Tnl GH Spon Lane Jn MIN 3027yds Aston IR EY Park Head Locks M Smathwick Locks [?] M B EL AI AZ Park Head Jn N 24L Locks F Boshboil [ L ? I Cldbury Cldbury Jn NE Smathwick Jn Billesley Blower’s Green Lock ] & [?] Oldbury Aston Jn Brandwood Windmill SOMO WARWICK H Locks L Farmer’s [?] hole End Jn O Ashted JUNCTION C D

D Engine O N U Branch N Br Locks ] U Tnl

A P ? C D o [ R 2 L D Branch Garrison Stourbridge . A E . N 2 [?] PORT B o Y L A Locks N N C Sixteen L E [?] Northfield Y o. LOOP E 2 A Y Titford Digbech L D L N Pools E A A Basin Ashted G U N ID D L Roservoir BR A Brierley [?] ST Locks UR C Nil Gosty Hill BIRMINGHAM TO Delph LOOP Gas St S G Tnl 557yds R Locks Farmer’s Basin A Camp Hll Locks STER & N E D Bridge Jn C GHAM U STOURBRIDGE Stourbridge R IN N ARM M IO WO IR Edgboston N [?] [?] B Tnl 106yds City Divisions City Systems (Water, Sewage, Canal Network Electricity, Broadband, …) Sources: Google maps, Ordonance Survey. But have you ever considered the financial flows? Understanding a City’s Financial Circulatory System allows administrators to identify inefficiencies and reduce costs.

Business People outside Central Gov City outside City

Payroll Central Gov Taxes Central Social Benefits Grants Business in Financial People in City City Institution Purchasing (consumers) Benefit Payments (City) Council Tax Rent and Charges Procurement (B2B) Fares/Tolls (Consumer) Foreign Direct Investment City Council Financing (B2B)

Social Health & Roads & Housing Education Benefits Safety Transit

Ports of Entry To become more efficient

 Transform treasury and cash practices to manage complex Efficiency payment flows, streamline and deliver scale through automation  Release essential savings and foster business growth by leveraging a city’s spending power and supplier Transformation relationships to unlock trapped cash at both ends of the value chain of City-wide  Gain greater control of spending and improve oversight and management of procurement and travel costs

Services  Provide convenient and flexible benefits payments to citizens with improved security and processing efficiency

 Streamline operations, clearance and processing at airports, shipping or customs with the electronification of document handling; the acceleration of trade and financial flows, collection of duties/taxes, payment of refunds, etc.

Treasury Bank for the City of Transforming payments / collections Prepaid card programs to replace Warsaw. for the Mexico General Hospital . benefit payment by many UK city councils and Bogota City Council.  Rationalized banking structure and  Set up a call center to automate transformed visibility via CitiDirect appointments & payments  Reduced processing costs by > 60%.  Customized cash collection and  Payments deposited in an optimized  Improved security and flexibility for supply using prepaid cards concentration account recipients. To finance projects

 Access alternative and additional financing options Urban including debt structuring, creative bond structures, asset monetization, project finance Infrastructure  Administer and execute on public/private finance initiatives to facilitate infrastructure development, urban Modernization regeneration and business development programs  Self-fund infrastructure modernization by leveraging supply chain relationships and related long term operating expenses

Consolidated utilities for the Efficient buyers credit program Citi amongst the mandated banks to City of Indianapolis. benefitting both hospital and their equip the first metro line in Santo suppliers in Catalunya, Spain. Domingo.

 Sell-side advisor on asset sale of  Suppliers can expedite cash inflow  Funding via Export Agency Finance for water and sewer systems  Hospitals assured timely payment by the purchase of rolling stocks for the  City monetized synergies regional healthcare authority rapid transit system in the capital of  25% reduction in water/sewer rates the Dominican Republic. To improve services offered to your citizens

 Improve transport systems to accommodate growing demand, reduce the cost of fare collection and deliver an enhanced Digitization of commuter experience  Enable active travel management by leveraging mobile technology to deliver smart parking, enable congestion zone Payment / and bridge, tunnel toll charging Access  Explore sustainable resource and waste management with integrated metering and billing, recycling incentives Channels for  Relieve administrative burden, improve data integrity and security by digitizing forms and identity documents to Citizens accelerate benefit entitlement verification and payment  Deliver safe, convenient and flexible access to services through &Communities cashless communities where ID verification, service/benefit access, payment and actionable, location-based information are integrated via cards and mobile app.

Transit partnership in Singapore Transit partnership in Warsaw, Wrocław and driving efficiency and commerce Trójmiasto driving efficiency and commerce

 Transit-enabled debit & credit cards.  Transit-enabled debit & credit cards for season  Dominant in-station presence with banking travel. centres and advertising.  Dominant in-station presence with kiosks and advertising. We are working with cities across the globe Many cities around the world are using technology to extend services and make cities more livable and efficient for citizens, local businesses and government.

Digitise information on Replace expensive parking meters Enable citizens to pay council tax, benefit or with card and mobile solutions that anywhere, anytime housing forms to streamline enable citizens to search, locate and using a method of their processing, manage pay capabilities. choice for a broader entitlement and ensure range of a city’s services timely payment using the and achieve dramatic latest in digital identify and improvement in collection card technologies. efficiencies and revenue reliability by centralising receivables.

Help maintain supply chain stability and extend risk participation Timely collection of payments (taxes, fines, …) by through supply chain management. enabling bill presentment and payment via mobile phones. Payment Product Delivery Buyer Date Date

Collection Date Supplier

Financing provided by bank

A fully integrated, socially inclusive, mass transit solution across Think beyond payment of multiple channels. incentives or benefits by linking government spending power to relevant offers and services to help encourage and direct spending e.g. Back to work programs, health services at reduced cost. Conclusions Understanding Cities Cities comprise complex ecosystems undergoing significant change. They are diverse and different but share similar challenges and objectives.

Objectives & Priorities o Efficiency – Cost optimization and efficiency reform – Reduce administrative burden eg. document processing – Modernize infrastructure eg. collections and payments o Public Policy – Address environmental challenges – Inclusive citizen and community access to safe, reliable, convenient services eg. distribution channels o Prosperity – Attract business and human capital – Job creation and commercial development