Citigroup and Transaktionsinstitut cooperate on Payment transactions
London, 24th May 2005 – Citigroup Global Transaction Services and Transaktionsinstitut für Zahlungsverkehrsdienstleistungen AG (Transaktionsinstitut) have agreed on a strategic partnership. Citigroup will process its German national payments through Transaktionsinstitut from late summer 2005 onwards. The migration has begun in April 2005 and will be completed during the course of the 3rd quarter 2005.
Michael Steinbach, CEO of Transaktionsinstitut, says: "This strategic cooperation with the world's largest financial institution emphasises our market position and our ability to deliver. This is a further important step for Transaktionsinstitut in positioning itself as a leading payment service provider operating in Germany and Europe and across banking sectors."
Both institutions have firmly expressed their wish to extend their cooperation in the future.
Commenting on the strategic significance of this transaction, Dr. Helmut Gottlieb, Head of Citigroup Global Transaction Services for Germany, Austria, and Switzerland says: "We are very excited about the strategic alliance with Transaktionsinstitut in Germany, a key growth market for Citigroup. Working with Transaktionsinstitut, we gain access to their market-leading payments processing platform for Euro-payments. This will strengthen our proposition to our global clients in Germany."
Francesco Vanni d'Archirafi, Chief Executive Officer of Citigroup Global Transaction Services for Europe, Middle East and Africa, confirmed: "Citigroup is committed to expanding our transaction services capabilities in Germany, through both direct investment and strategic alliances, to deliver the right solutions for our clients at the best price. With Transaktionsinstitut we have made a decision for a partner in payments processing which satisfies our high standards regarding cost and quality to the extreme."
Dietrich Voigtländer, Member of the Board of DZ BANK AG and Chairman of the Supervisory Board of Transaktionsinstitut, emphasizes: "This cooperation is of great importance for Transaktionsinstitut and its position within the European payment services landscape. Our goal to establish Transaktionsinstitut as a partner for third parties has proven to be the right decision and is being reinforced significantly through this partnership."
After the expansion into the Euro zone through cooperation with the Belgian KBC Bank NV and FIN-Force NV in Brussels, signed in March of this year, Transaktionsinstitut has thus also succeded in acquiring an important client in its home market, Germany.
Transaktionsinstitut für Zahlungsverkehrsdienstleistungen
Transaktionsinstitut für Zahlungsverkehrsdienstleistungen AG (Transaktionsinstitut) was set up in April 2003 as an independent provider of payment transactions services. It is owned by the German DZ BANK AG (95 per cent) and KBC Bank NV of Belgium (5 per cent). Transaktionsinstitut processes the domestic and international payments of its parent bank, as well as those of 1,100 affiliated cooperative banks and of other banking institutions. Transaktionsinstitut handles over 3 billion transactions annually (mainly domestic payments). The company, headquartered in Frankfurt, has a 16 per cent market share in Germany and a 5 per cent share in Europe.
Citigroup (NYSE: C), the preeminent global financial services company has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travellers Life and Annuity. Additional information may be found at: www.citigroup.com.
About Citigroup Global Transaction Services
With over US$121 billion in average liability balances, more than US$ 7.9 trillion in assets under custody and the largest proprietary branch network, Citigroup’s award-winning operating systems and Internet-based delivery channels enable clients to manage and monitor working capital and investments more efficiently, streamline transaction processing cycles, and re-engineer receivables and payment processes. Citigroup Global Transaction Services provides clients with access to Citigroup’s full range of capabilities and solutions along with an on-the-ground presence and in-depth knowledge of more than 100 local markets. For additional information, see www.transactionservices.citigroup.com.