Citibank: Distributed Ledger Technology (DLT) and AI will revolutionize corporate finance operations in 3-5 years.

Citi Group recently released a report discussing the future development trends of corporate finance functions. The report pointed out that artificial intelligence (AI) and distributed ledger technology (DLT) are two technologies that may drive changes. Digital assets, Blockchain, and smart contracts will play a key role in 24/7 fund flows. Smart contracts and tokenization technology make programmability payments and automation possible. (Background: Buffett indicator touches 200%! Citi warns: US stock flash crash may occur at any time, longs are too optimistic..) Citi released a report called "Treasury 2030" on the 3rd, discussing the future development trends of corporate finance functions. The report found that 93% of surveyed corporate finance executives believe that there will be significant changes in corporate finance functions in the next three to five years, but more than half of them do not know what these changes will be. The report pointed out that artificial intelligence (AI) and distributed ledger technology (DLT) are two technologies that may drive this change, but the current top priority is to improve data access capabilities to support decision-making. The two core changes include shifting from batch processing to 24/7 operations and AI-driven automation. Citi stated that the role of corporate finance managers needs to go beyond traditional financial risk management, cash flow, and fund management categories. Since income and payments will immediately affect the cash balance, digital payment channels should be included in the responsibilities of finance managers. The role of DLT and tokenization Citi believes that digital assets, Blockchain, and smart contracts will play a "critical" role in 24/7 fund flows, and smart contracts and tokenization technology make programmability payments and automation possible. The report specifically mentioned the Regulated Liability Network (RLN), which is an infrastructure proposal that integrates tokenized deposits, regulated stablecoins, and Central Bank Digital Currencies (CBDC) into a common network with programmability. Citi further pointed out: AI technology can learn from past payments to better identify potential fraud cases, smart contracts can automate certain processes and eliminate high-cost third-party transactions. Digital identity solutions can help institutions ensure that only authorized personnel can execute transactions. The report surveyed 27 large enterprises' financial managers, asking which technologies will have the greatest impact in the next three to five years. The results showed that data strategy and data collection are the top follow points, while DLT and digital assets rank fifth. A key point not mentioned in the report is that financial managers may need to deploy AI internally to learn from their data and assist in decision-making. DLT, as a backend technology, can achieve its advantages without being fully noticed. For example, financial managers usually do not deliberately consider real-time gross settlement (RTGS) systems, but rather follow payments, cash inflows, and their timing arrangements. However, if they want to fully utilize programmability, they may need to have a deeper understanding of these technologies. Related reports: Citi Bank launches 'deposit tokenization' service: improving cross-border remittances, supporting Smart Contract.. Citi Bank: Asset tokenization will reach a Market Cap of 5 trillion USD by 2030 Citi: Ether will move towards deflation in the future, with the current annual inflation rate only 0.01% "Citi Bank: Distributed Ledger (DLT) and AI will revolutionize corporate finance operations in 3-5 years." This article was first published on BlockTempo, the most influential Blockchain news media in the dynamic area.