Citigroup Inc. plans to expand its business payments capabilities by joining Syncada, a supply chain processing network owned by Visa Inc. and U.S. Bancorp.
Citi and Syncada announced March 29 that the New York-based bank’s Global Transaction Services unit will add Syncada to its roster of existing supply chain financing services.
Through the division, Citi has more than 65,000 clients in more than 100 countries.
The partnership with Syncada is part of the bank’s effort’s to offer “best-in-class” services to clients, Amol Gupte, North America Treasury and Trade Solutions head of Global Transaction Services at Citi, said in a press release.
Citi is the second bank that Syncada has announced as a client since Visa and U.S. Bancorp announced its formation in July 2009. In October, Syncada announced Commerce Bancshares Inc. of Kansas City, Mo., had joined the network (
For Syncada to flourish, it would need to get multiple large banks on board, as it relies on having a built-in base of participants to conduct transactions with one another, analysts say.
“Adding Citi to the Syncada network is significant for us,” Kurt Schneiber, Syncada chief executive, said in the release. Schneiber said the addition of Citi is a “validation” of the Minneapolis-based venture’s strategy.
