Citigroup Offers Cross Border Payment Solutions for Banks

Institutions can leverage Citigroup's infrastructure and products to streamline and expand their global payments capabilities

SIBOS, October, 2006, Sydney, Australia – Global Transaction Services, a business of Citigroup Corporate and Investment Banking, announced today that it is now offering financial institutions around the world a cost-effective alternative to reengineering or building their own international payments infrastructure and products.

With the new Cross Border Payment Solutions from Citigroup, banks can outsource their international payments processing to Citigroup and leverage its industry-leading foreign exchange and payments processing networks. Plus, Citigroup now offers financial institutions a set of customizable and white-labeled corporate cash services that they can rebrand to introduce new or enhanced cash management capabilities to their customers.

"For many banks around the world, regulatory demands, market forces, and infrastructure investments are making it harder and harder to operate a profitable cross-border payments business. This is particularly true for banks that have outdated processing systems, low volumes of payments, or a locally focused franchise," said Eileen Dignen, Citigroup's Head of Payments for Banks "As these banks look for ways to increase efficiency and enhance revenues, it can be cost-prohibitive to go it alone. One of the most cost-effective solutions can be to partner with an institution, such as Citigroup, that has the global scale and infrastructure, as well as leading market-tested products, rather than to try to build solutions on their own."

Citigroup is one of the largest foreign exchange banks in the world and Global Transaction Services alone processes US$3 trillion in transactions daily worldwide. In recent years, Citigroup has invested heavily in an advanced, integrated global network and online banking platform to meet the needs of its own operations in more than 100 countries. Citigroup now extends to financial institutions around the world the ability to leverage its worldwide capabilities to meet their cross-border needs through two new sets of offerings:

International Payments Processing
Citigroup's International Payments Processing enables banks to build or streamline their payments operations with advanced reporting and fraud mitigation features. International Payments Processing from Citigroup includes three components:

  • Check issuance: Fulfills issuance of remote checks in more than 30 currencies and onsite checks in more than 15 currencies.
  • Mass payments: Enables processing of high volume, low value payments, such as pension and dividend payments, via remote checks or international ACH.
  • Non-core currency outsourcing: Provides banks the ability to outsource payments in its "non-core" currencies, allowing them to initiate wire payments in more than 130 currencies without holding nostro accounts.

Corporate Cash Services
Banks can quickly go to market with new or enhanced global payment services by customizing these Citigroup offerings to meet their needs:

  • Multicurrency accounts: Provides banks with the ability to offer white label accounts in more than 35 countries. The accounts are owned and operated by the bank and offered via Citigroup hubs in London, Tokyo and New York.
  • International payments: Gives banks the ability to offer their customers non-account based payment capabilities for check issuance and mass payments processing, as well as in the bank's non-core currencies.

    (International Payments Processing is powered by WorldLink® Payment Services. WorldLink Payment Services is owned and operated by Citibank Europe plc, a Dublin-based subsidiary of Citigroup Inc.)

  • CitiDirect® Online Banking white label for cross-border payments: Through a white-labeled version of Citigroup's award-winning banking portal, banks can provide their clients with an easy-to-use electronic banking platform, customized with their branding and color schemes, for initiating international payment transactions and accessing information about them.

"When local or regional banks partner with us to reengineer or extend their cross-border business we view it as a win-win situation," said Gayathri Vasudev, Brand Manager for Cross Border Payment Solutions for Banks. "Citigroup is able to leverage its capacity and investment in one of the industry's most advanced payments infrastructures and global networks. And partner banks gain a cost beneficial solution that enables them to respond quickly to regulatory and marketplace demands."

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Citigroup
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.