Citi has agreed an outsourcing agreement with First Data, handing over the core processing elements of its US lockbox operations.
Under the deal, First Data will provide lockbox, image capture, posting and reporting of receivables for corporate billers. The firm says it will offer jobs to the 500-odd existing Citi staff in the unit and sublease the bank’s lockbox processing facilities.
“For Citi, this will result in a more competitive position in the market while providing a scalable platform and the long-term infrastructure to enable us to meet the growing geographic scope and sophistication of our clients’ needs,” says Amol Gupte, head, treasury and trade solutions, Citi, North America.
“Through this agreement, we are able to expand our geographic footprint for remittance and lockbox services, particularly in the Midwest, and utilise the technology and scale that we bring to the marketplace on behalf of Citi and its clients,” says Matt Kardell, SVP, sales and strategic relationships, First Data.
L.D.