Citi and Emirates NBD Collaborate to Launch First-of-Its-Kind 24/7 USD Cross Border Payments in the Middle East

Rhea-AI Summary

Citi (NYSE: C) has partnered with Emirates NBD to introduce a 24/7 USD Clearing service in the Middle East. This collaboration enables Emirates NBD to offer round-the-clock cross-border USD payments to its corporate and retail clients in the UAE and Saudi Arabia. The service eliminates payment flow barriers caused by different weekend schedules and early cut-off times in the UAE and aims to expand globally. Shahmir Khaliq of Citi highlighted the service as a market differentiator, enhancing payment speed, efficiency, and transparency. The initiative supports Emirates NBD’s role in providing innovative services and meeting client needs in key trade corridors.

Positive

• Citi's 24/7 USD Clearing service enhances payment speed, efficiency, and transparency.
• Emirates NBD offers round-the-clock cross-border USD payments, improving client service.
• The collaboration eliminates barriers caused by different weekend schedules and early cut-off times.
• Expansion plans include extending services to all Middle East branches and globally.
• Supports the growth ambitions of Emirates NBD’s clients by facilitating timely fund transfers.

Negative

• The service's success depends on seamless integration across all branches, which may pose challenges.
• There could be significant initial costs for implementing and maintaining the 24/7 service.
• Potential operational risks related to constant availability and system maintenance.

Insights

Financial Analyst

Citi and Emirates NBD's new 24/7 USD Clearing service marks a significant enhancement in cross-border payment capabilities for the Middle East region. From a financial perspective, this move is likely to reduce operational costs associated with handling transactions limited by traditional banking hours and holidays. Additionally, it could increase transaction volumes for both banks, enhancing their revenue streams.

For retail investors, the ability to process payments continuously can foster better liquidity management and potentially increase customer satisfaction for corporate clients. This service differentiation can also bolster Citi and Emirates NBD's competitive position in the marketplace, attracting new clients looking for flexibility in their financial operations.

However, the successful deployment and scaling of this service will depend on technological capabilities and effective risk management to handle potential cybersecurity threats associated with round-the-clock operations.

Market Research Analyst

The launch of a 24/7 USD Clearing service by Citi and Emirates NBD addresses a common pain point in the financial market – the restriction of transaction windows due to differing weekend and holiday schedules. This service could significantly enhance the trade flows in the UAE and Saudi Arabia, especially in key trade corridors.

For retail investors, understanding that this service can potentially increase the efficiency of businesses operating across different time zones is crucial. This could lead to a broader adoption of services offered by Emirates NBD and Citi, resulting in higher client retention and acquisition rates, which, in turn, influences the financial health of both institutions.

From a broader market perspective, this move could spark similar initiatives by other banks, driving further innovation and competition in the financial services sector. It is worth noting that this development aligns with the global trend towards instant payments, reinforcing the banks’ roles as pioneers in payment solutions.

The collaboration reflects another important milestone for Citi’s 24/7 USD Clearing multibank solution for its bank clients globally

DUBAI, United Arab Emirates--(BUSINESS WIRE)-- Today, Citi (NYSE: C) and Emirates NBD, a leading banking group in the MENAT (Middle East, North Africa and Türkiye) region, announced a collaboration to launch Citi’s first-of-its-kind 24/7 USD Clearing service in the Middle East. This makes Emirates NBD the first bank to use Citi’s 24/7 USD Clearing service to make cross-border USD payments available to their corporate and retail clients 24 hours a day, 7 days a week, 365 days a year, end to end across their branch network.

The service will be available in Emirates NBD’s UAE and Kingdom of Saudi Arabia branch networks, helping to remove barriers to the payment flow process in the region that stem from different weekend and early afternoon cut-off times in the UAE for executing transactions. Emirates NBD, in collaboration with Citi, plans to expand the service to all its branches in the Middle East and across the globe, including partnerships with Emirates NBD’s third-party institutions.

Shahmir Khaliq, Head of Services, Citi, said: “Consumers demand instant payment capabilities no matter where they are in the world, and our collaboration with Emirates NBD is an important step in our journey to creating a multibank solution that is designed to deliver an end-to-end, ‘always on’ experience for participant banks and their customers. Our 24/7 USD Clearing service is a clear differentiator in the market. It demonstrates the full value of our globally leading cross border payments and clearing capabilities, which enable our clients to make payments faster and in a more efficient and transparent manner.”

Emirates NBD will fully utilise Citi’s 24/7 USD Clearing capabilities, including commercial payments and treasury payments execution. The collaboration with Citi reinforces Emirates NBD’s industry-leading role in providing its clients with innovative services.

Ahmed Al Qassim, Group Head of Wholesale Banking, Emirates NBD, said: “Our collaboration with Citi to bring 24/7 USD Clearing to the region reflects our commitment to facilitate the payment needs of our clients in key trade corridors in which they operate. The introduction of 24/7 USD Clearing will support the growth ambitions of our clients by giving them the ability to seamlessly transfer funds in a timely manner without having to worry about cutoffs and holidays.”

Citi’s 24/7 USD Clearing technology and network is an essential component of the solution enabling Emirates NBD to provide 24/7/365 USD services between its branches. The service enables financial institutions to make USD payments across Citi's 1,500 financial institution customers globally, 24 hours a day, 7 days a week, including holidays in the United States. Citi now has more than 130 FI clients using its 24/7 USD Clearing service since 2022.

For more information visit Citi Services.

About Citi

Citi is a preeminent banking partner for institutions with cross-border needs, a global leader in wealth management and a valued personal bank in its home market of the United States. Citi does business in nearly 160 countries and jurisdictions, providing corporations, governments, investors, institutions and individuals with a broad range of financial products and services.

Additional information may be found at www.citigroup.com | Twitter: @Citi | LinkedIn: www.linkedin.com/company/citi | YouTube: www.youtube.com/citi | Facebook: www.facebook.com/citi

About Emirates NBD

Emirates NBD (DFM: Emirates NBD) is a leading banking group in the MENAT (Middle East, North Africa and Türkiye) region with a presence in 13 countries, serving over 9 million active customers. As at 31st March 2024, total assets were AED 902 billion, (equivalent to approx. USD 246 billion). The Group has operations in the UAE, Egypt, India, Türkiye, the Kingdom of Saudi Arabia, Singapore, the United Kingdom, Austria, Germany, Russia and Bahrain and representative offices in China and Indonesia with a total of 858 branches and 4,450 ATMs / SDMs. Emirates NBD is the leading financial services brand in the UAE with a Brand value of USD 3.89 billion.

Emirates NBD Group serves its customers (individuals, businesses, governments, and institutions) and helps them realise their financial objectives through a range of banking products and services including retail banking, corporate and institutional banking, Islamic banking, investment banking, private banking, asset management, global markets and treasury, and brokerage operations. The Group is a key participant in the global digital banking industry with 97% of all financial transactions and requests conducted outside of its branches. The Group also operates Liv, the lifestyle digital bank by Emirates NBD, with close to half a million users, it continues to be the fastest-growing bank in the region.

Emirates NBD contributes to the construction of a sustainable future as an active participant and supporter of the UAE’s main development and sustainability initiatives, including financial wellness and the inclusion of people of determination. Emirates NBD is committed to supporting the UAE’s Year of Sustainability as Principal Banking Partner of COP28 and an early supporter to the Dubai Can sustainability initiative, a city-wide initiative aimed to reduce use of single-use plastic bottled water.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240612765125/en/

Victoria Ifan

Victoria.ifan@citi.com

+1 212 816 6149



Tara Siriniyan

Tara.siriniyan@citi.com

+971 56 791 6146



Mahmoud Kassem

Mkassem@brunswickgroup.com

+971 54 177 0899

Source: Citi

FAQ

What is Citi's 24/7 USD Clearing service?

It's a service enabling 24/7 cross-border USD payments, enhancing speed and efficiency.

Which banks are involved in the 24/7 USD Clearing service collaboration?

Citi and Emirates NBD.

Where is Citi's 24/7 USD Clearing service available?

In Emirates NBD’s UAE and Saudi Arabia branches, with plans for global expansion.

What advantages does the 24/7 USD Clearing service offer?

It provides round-the-clock payment capabilities, removing barriers from weekend schedules and early cut-offs.

Who are the clients of Citi's 24/7 USD Clearing service?

Citi's 1,500 financial institution customers globally.