Citi Moving European Processing to One Irish Site
Power, Carol, American Banker
Citigroup Inc. is consolidating much of its European payment processing operations into a single center in Dublin, taking advantage of the Irish capital's hospitality toward corporate tenants.
Operations for cash management, global custody, funds administration, and corporate card processing are being moved from five sites into a 270,000-square-foot office block in Dublin's International Financial Services Center. In all, 100,000 transactions worth $100 billion pass through the Irish processing centers each day for customers in Europe and the United States.
The office building, Ireland's largest, is to accommodate more than 2,000 people when it opens next year. "Our plan is to develop a total of 2,300 jobs in Ireland over the next three to five years," said Aidan Brady, chief executive officer of Citibank Ireland.
The banking company's decision to center the bulk of its European processing in Dublin was not motivated by the country's favorable tax rates, Mr. Brady said, but the low-rate environment is "a major consideration for most of our customers."
One of Citibank Ireland's most successful initiatives is running treasury services on behalf of corporate customers as an outsourcer. Ninety major corporations and financial institutions, including Procter & Gamble, Johnson & Johnson, Dow Chemical, and McDonald's, have turned over their treasury operations to Citibank.
"We are the leading foreign bank in Ireland with outsourced treasury operations," Mr. …