Citi said in a release that it will continue to be the direct point of contact for all client interactions, including sales and service.
Services that will 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.
Citi's Amol Gupte, head of treasury and trade solutions in North America, thinks the arrangement is a win-win for all involved.
"This agreement benefits all parties: Citi, our clients, our employees and First Data," Gupte said in a statement. "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."