First Data has signed an agreement with Citi to provide outsourcing services, supporting Citi’s US receivables business. Under the agreement, Citi will outsource the core processing elements of its United States lockbox operations to First Data.
First Data claims that this agreement will enhance Citi’s lockbox offerings for its current and future clients. Reportedly, Citi remains committed to its current lockbox clients, continuing as their direct point of contact for all client interactions including sales and service.
First Data said that the services to be provided include lockbox, image capture, and posting and reporting of receivables for corporate billers. As part of the agreement, First Data will extend offers of employment to all existing Citi lockbox staff and will sublease facilities and assume equipment at Citi’s lockbox processing facilities.
Amol Gupte, head of Citi’s treasury and trade solutions in North America, said: This agreement benefits all parties – Citi, our clients, our employees and First Data. 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.
“This agreement is an important enabler to our global receivables strategy of delivering significant efficiencies to our clients in their order-to-cash and working capital management processes.
