NAB does A$20m processing deal with Citi
(Australia) - National Australia Bank (NAB) has closed a A$20 million cheque processing a clearing contract with Citibank for service in Victoria and New South Wales, joining its existing arrangements for two other states.
NAB also processes cheques for HSBC and Macquarie Bank along with a major contract in place with the Credit Union Services Corporation (CUSCAL). This latter relationship is due to go to tender in June with expected competition from the Commonwealth Bank of Australia (CBA) and potentially some of the technology outsource service providers, chasing its attractive transaction scale of 30 million cheques annually.
CBA currently provides administrative processing to Citibank for its home lending business in Australia. Unisys is likely the most interested technology based bidder with existing cheque processing business in place with Westpac.
Infrastructure requirements in cheque processing within the Australian markets are unsustainable for many smaller volume players and continuing consolidation is anticipated within the sector. Volumes are also declining as payment channels increasingly shift to electronic, in particular internet platforms.
CBA currently provides administrative processing to Citibank for its home lending business in Australia. Unisys is likely the most interested technology based bidder with existing cheque processing business in place with Westpac.
Infrastructure requirements in cheque processing within the Australian markets are unsustainable for many smaller volume players and continuing consolidation is anticipated within the sector. Volumes are also declining as payment channels increasingly shift to electronic, in particular internet platforms.
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