Westpac appoints Citi as Supply Chain Finance Partner
SYDNEY, VIENNAK - September 15, 2008 – Citi announced today that its Global Transaction Services business and Westpac have entered into a supply chain partnership which will deliver a more innovative and expedient payment service for Westpac customers operating in international markets.
Under the agreement, Westpac will leverage Citii’s 'white labeled' global payables and receivables platform to offer a suite of domestic and international supply chain finance solutions for the benefit of business customers in Australia and overseas.
By white labeling Citii’s global receivables financing platform, Westpaci’s trade customers will benefit from having access to Citii’s leading edge technology backed by Westpaci’s specialist expertise and deep understanding of their business. This partnership will enable Australian exporters to accelerate their receipt payment from their offshore customers and improve their working capital cycle.
Citii’s supply chain finance solution for cross border payables will also allow Westpac to expand its domestic supplier finance offering to include offshore suppliers of goods. Large buyers in Australia can now achieve extended payment terms to any of their suppliers globally by offering a supplier finance program powered by a combination of Westpac and Citii’s payables management system, depending on the location of suppliers. The buyer simply sends Westpac an approved payments file and proceeds are made available to suppliers (at a discount) via a Westpac portal domestically and via the Citi system in offshore locations.
Alex Holcomb, Westpaci’s General Manager, Working Capital Solutions, said, "Our partnership with Citi translates to immediate operational efficiencies and access to a truly innovative solution for our business customers, both buyers and suppliers, requiring online cash management, working capital and trade solutions."
"The easy to use online portal will ultimately save our customers time and money by increasing the efficiency of their working capital cycle and by effectively outsourcing elements of their accounts payable and receivable processing to the bank."
"This is a new chapter in broadening the range of trade and working capital solutions available for our business customers, both domestically and overseas. Combined with our new web based trade system, WinTrade, we now have a very exciting market-leading suite of trade and supply chain services."
Akash Rathke, Managing Director and Region Head of the Bank Services Group and Public Sector, Citi Asia Pacific said, "As Westpac is one of the largest banks in Australia and New Zealand, Citi will now be able to better support its own clients in these markets through Westpaci’s existing network. Additionally, the partnership will also allow for Citi to leverage off Westpaci’s experience in these markets, which spans from the large corporate clients to small medium enterprises."
"By appointing Citi as its supply chain partner, Westpac have taken a large step in supporting the international business of their clients. By leveraging off of our experience, technology and global footprint, Westpac have entered into a committed partnership with Citi and can now offer innovative solutions that their competitors cannot."
Citii’s Global Transaction Services offers integrated cash management, trade, and securities and fund services to multinational corporations, financial institutions and public sector organizations around the world. With a network spanning over 100 countries, Citii’s Global Transaction Services supports over 65,000 clients. As of the 2nd quarter of 08, it held on average $276 billion in liability balances and $12.8 trillion in assets under custody.
About Citi’s Institutional Clients Group:
Citi's Institutional Clients Group serves corporate clients, governments and institutional investors around the world, providing expertise and innovative solutions in banking, markets, transaction services and alternative investments. With a history dating back nearly 200 years, Citi today has a global network that includes offices in 104 countries, trading desks in more than 80 countries and transaction services infrastructure covering 140 countries. Citi aims to be trusted advisor to our clients, to execute flawlessly, to strategically commit capital and to always focus on innovation. .
Citi, 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. Citii’s major brand names include Citibank, CitiFinancial, Primerica, Citi Smith Barney, Banamex and Nikko. Additional information may be found at www.citigroup.com or www.citi.com.