Chinese and South Korean Banks to Partner With Citi for International Payments
Citi’s Bank Services Group, a division of Global Transaction Services, has announced a partnership with Agricultural Bank of China. Under the landmark mandate, Citi will provide the Agricultural Bank of China with international payments processing for on-site check services that enable expansion of its banking services to consumer clients.
For Agricultural Bank of China, the partnership will support check payments for 16 different currencies from a single Citi account. Aside from improving operational efficiency, Citi’s on-site check solution will provide Agricultural Bank of China with fraud prevention upgrades, 24-hour foreign exchange capabilities, and daily foreign exchange spot rates. All checks issued through Citi’s solution will be customised with Agricultural Bank of China’s corporate logo.
Citi has served as Agricultural Bank of China’s US dollar clearing provider for a number of years. The partnership between Citi and Agricultural Bank of China has deepened as the bank expands its consumer banking business to meet the growing demands of customers travelling overseas. Initially, Agricultural Bank of China plans to roll out the on-site check solution in 15 branches throughout China, followed by a nationwide launch in the near-term future.
Additionally, Citi’s Bank Services Group has announced that it has been selected by South Korea’s Kookmin Bank to enhance its international payments capabilities globally with Citi’s International Payments Processing solution that supports a variety of exotic currencies. Citi says that the partnership will enable Kookmin Bank to make significant efficiency improvements in terms of reconciliation and reporting, while also catering to the international requirements of its increasingly sophisticated client base. As a further benefit, Kookmin Bank will realise substantial cost benefits resulting from rationalising expensive nostro accounts.
Initially, Citi will provide Kookmin Bank with international payments support in selected markets, covering a range of exotic currencies. Once implementation has been completed, Kookmin Bank plans to extend this service to additional currencies.