First Data has entered into an agreement with Citi to provide outsourcing services supporting Citi’s US receivables business. As per the agreement, Citi will outsource the core processing elements of its US lockbox operations to First Data. Citi said that it would remain committed to its current lockbox clients, continuing as their direct point of contact for all client interactions, including sales and service.
Services that are expected to be provided by First Data include lockbox, image capture, 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.”
Matt Kardell, senior vice president, sales and strategic relationships at First Data, said: “This is a great opportunity for First Data. Through this agreement, we are able to expand our geographic footprint for remittance and lockbox services, particularly in the Midwest, and utilize the technology and scale that we bring to the marketplace on behalf of Citi and its clients.”
Colorado-based First Data is a global technology and electronic payments processing provider.
