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NEWS RELEASE
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Citigroup Boards the ARC,
Receives NACHA's 2005 Payments System Award
San Antonio, Texas, April 11, 2005 –
NACHA - The Electronic Payments Association awarded
its 2005 George Mitchell Payments System Excellence
Award today to Citigroup. In 2004, Citigroup doubled
the volume of automated clearing house (ACH)
payments it originated, and implemented ARC check
conversion in its Citi Cards business unit for
checks it receives from its cardholders. The award
presentation took place at NACHA's PAYMENTS 2005
conference.
"Citigroup is being recognized as a role model for
the payments industry because it practices what it
preaches," said Elliott C. McEntee, President and
Chief Executive Officer of NACHA "We all promote
electronic payments to companies and consumers, but
Citigroup is also adopting electronic payments
internally to meet its own business needs."
"Our experience using ACH for our own payment needs
serves us well in providing best in class service to
our clients who are looking to take advantage of the
benefits of electronic payments to optimize their
cash flow and liquidity processes," said Paul Galant,
Global Head of Cash Management for Citigroup's
Global Transaction Services.
In 2004, Citigroup originated 425 million ACH
payments, including on-us items, doubling its volume
of 2003, and in the process jumping from the eighth
to the fifth largest bank originator of ACH
payments, according to the NACHA Top 50 list.
Seventy-eight percent of Citigroup's ACH growth is
attributable to a decision by its Citi Cards
business unit to use ARC to convert checks it
receives from its cardholders into ACH debits. In
2004 Citi Cards converted 162 million of these
checks into ACH debits. At its current rate, the
Citi Cards unit alone will use ARC to convert 300
million checks into ACH debits in 2005.
"Citigroup has embraced the push to eliminate its
own paper-based payments and collections throughout
the organization," said Steve Garofalo, President &
CEO Citibank (Nevada), NA of Citi Cards. "Citi Cards
is extremely pleased with the success of ARC, and
with the extremely high levels of consumer
acceptance of these "ARC'ed" transactions."
In addition to ARC, Citi Cards uses
Internet-initiated (WEB) and telephone initiated
(TEL) e-checks to collect payments from its
cardholders. In 2004, Citi Cards originated 39
million and 8 million of these payments,
respectively.
Including other business units covering mortgages,
loans, insurance, investments, payroll and pensions,
as well as its own vendor payments, Citigroup used
the ACH Network for 255 million of its internal
payments in 2004, and is on pace for 400 million in
2005.
"Citigroup has demonstrated that a financial
institution and its corporate client and consumer
customers can benefit by a commitment to electronic
payments, and also that the use of one electronic
payment system can benefit another," said McEntee. "NACHA
congratulates Citigroup on its success in 2004, and
its bright prospect for continued success in 2005
and beyond."
Each year NACHA presents the George Mitchell
Payments System Excellence Award in recognition of
individuals and organizations that have improved the
nation's payments system. The award is named in
honor of George Mitchell, former Vice-Chairman of
the Federal Reserve Board of Governors.
About NACHA - The
Electronic Payments Association
NACHA is the leading
organization in developing electronic solutions to
improve the payments system. NACHA represents more
than 11,000 financial institutions through direct
memberships and a network of regional payments
associations, and 650 organizations through its
industry councils. NACHA develops operating rules
and business practices for the Automated Clearing
House (ACH) Network and for electronic payments in
the areas of Internet commerce, electronic bill and
invoice presentment and payment (EBPP, EIPP),
e-checks, financial electronic data interchange
(EDI), international payments, and electronic
benefits transfer (EBT). Visit NACHA on the Internet
at www.nacha.org.
About Citigroup
Citigroup (NYSE: C), the
leading global financial services company, has some
200 million customer accounts and does business in
more than 100 countries, providing consumers,
corporations, governments and institutions with a
broad range of financial products and services,
including consumer banking and credit, corporate and
investment banking, insurance, securities brokerage,
and asset management. Major brand names under
Citigroup's trademark red umbrella include Citibank,
CitiFinancial, Primerica, Smith Barney, Banamex, and
Travelers Life and Annuity. Additional information
may be found at
www.citigroup.com.
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