Centralizing and standardising payroll payments is not easy, legislation in most countries requires payments to be made from a local bank account and also many companies use a payroll processor to manage and administer payroll. Traditionally, payroll has been very fragmented. Bringing all these different pieces together and overcoming local resistance requires a long-term commitment and the systems/processes to do it.

Citi's new offering will enable clients to standardize, centralize and automate their payroll payments, which makes it possible to reduce overhead costs, increase payment control and achieve higher straight-through processing rates. Clients can access the payroll payment solutions through a range of market-standard and proprietary channels, see figures below. They can also use the new payroll payment methods, such as pre-paid cards, to provide further efficiencies.

Citi payroll solution e.g.: payroll vendor submits payment submits direct to Citi

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<span style="&quot;font-size:" 8pt;"="">(Payroll vendor could also send payment details back to Client who then sends payment file to Citi)

Most of Citi's clients have started by using their existing local payroll processors and instructing them to send the payment file for Citi to make through a local bank account in each country. In the longer term, Citi expects their clients to cut the number of payroll processors to achieve further standardization and economies of scale. Indeed, one global client has, over a two-year period, reduced the number of payroll processors from over 50 to 3, by finding ways to overcome local resistance from the HR departments and other organisations.

Anupam Sinha, Head of Corporate Payments for Europe, Middle East and Africa, commented, "We have developed a range of solutions that enable our clients to standardize and centralize their payroll payments wherever possible and, at the same time, provide the essential local payments where required."