Citigroup Rolls Out New Global Remittance Service to Help Retail Banks Meet the Needs of Migrant Workers
Latest offering provides cost-effective, secure solution for facilitating cross-border payments
SIBOS, October, 2006, Sydney, Australia Global Transaction Services, a business of Citigroup Corporate and Investment Banking, introduced a new service this week that enables banks to provide cost-effective, secure cross-border payment capabilities to immigrants in their countries.
As a global leader in both foreign exchange and payment origination, transfer and distribution, Citigroup is uniquely positioned to offer retail banks a comprehensive solution for providing global remittance services to the growing number of immigrants who regularly send funds to their home countries.
"This is a large, under-banked group of consumers who represent a real growth opportunity for banks in many countries," said Nancy Todor, Head of Global Remittances, Global Transaction Services. "What's more, by making it easier, less-costly and more secure for them to send funds, and for their recipients to get them, banks can increase the volume of payments globally that flow through formal, regulated channels."
According to some estimates, global remittances grew more than 10 percent annually between 1995 and 2006, with nearly one-third of them, or approximately U.S. $100 billion in 2005 alone, moving cross-border through unregulated or informal channels.
Focus on top origination and destination countries
The new Citigroup global remittance service will be targeted at key payment origination and destination countries, as identified by major multilateral organizations such as the World Bank. These include the top origination countries of U.S., Canada, Australia, Western Europe and the Gulf States and the leading destination countries of Mexico, India, the Philippines, and regions including South Asia and Latin America.
An end-to-end offering
When banks use the Citigroup service, their customers can easily initiate transactions electronically through a Web site or in-person at one of the bank's branches. Citigroup provides the Web site hosting, foreign exchange and funds transfer services, and delivery in "the last mile" to the beneficiary.
"Historically, cross-border consumer payments has been an area that has received little attention from the banking industry," added Todor. "However, more than ever there are larger numbers of consumers conducting cross-border transactions. Banks that expand or enhance their product offerings to meet the needs of these consumers now stand to secure an attractive position in the marketplace and to increase their market share."
Citigroup (NYSE: C), the leading 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, securities brokerage, and wealth management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney and Banamex. Additional information may be found at www.citigroup.com
Citigroup Corporate and Investment Banking
Our Corporate and Investment Banking group achieves the extraordinary for our clients around the world. No financial institution is more committed to understanding and advancing the goals of its clients – our diverse and talented staff in some 100 countries advises companies, governments, and institutional investors on the best way to realize their strategic objectives. We create solutions for and provide the broadest possible capital and market access to thousands of issuer and investor clients, and no institution better executes the increasingly complex payment and cash management solutions required in today's global economy. Core business lines under Citigroup Corporate and Investment Banking include Global Capital Markets, Global Banking and Global Transaction Services.