PHILIPPINES (Manila Bulletin) - Under the terms of the agreement, Citigroup intends to integrate Citibank's payment and settlement capabilities into Oracle's market exchange, transact Citigroup's internal spending through Oracle's open marketplace OracleExchange.com, implement the Oracle Internet Procurement solution worldwide and market OracleExchange.com services to its corporate client base.
The agreement also calls for Citigroup to embed its financial services into Oracle technology, including OracleExchange.com, using Citibank's CitiConnect integrated financial solution that allows B2B participants to initiate settlement for goods and services online, at the time of the transaction.
"Citigroup is moving ahead on its Internet strategy to provide a suite of comprehensive products including payments and financial services to consumers and corporations. We are also focused on using web technology to improve our productivity and cut operating costs," said Deryck Maughan, vice chairman Citigroup and Chairman Citigroup Internet Operating Group.
"This agreement complements our efforts to be the financial services engine on B2B marketplaces. Our customers will benefit from having access to Oracle's one-stop emarketplace that automates the entire purchasing lifecycle, from obtaining product information through to settlement and payment. As a result, they will be able to reduce purchasing and accounting costs while integrating their supply chains," said Jorge Bermudez, executive vice president, Citibank e-Business.
Under the terms of the agreement, Citigroup was also named the first Strategic Affiliate in "The OracleExchange.com Affiliate Program." As a Strategic Affiliate, Citigroup will utilize OracleExchange.com, Oracle's global B2B marketplace, which is open to all companies. The agreement also creates a co-branded online marketplace through which Citigroup will transact its internal spending. By driving purchasing through OracleExchange.com, Citigroup will streamline its procurement processes while lowering costs through aggregate purchasing and access to a larger supplier pool.
An additional significant aspect of this agreement is that Citigroup will market Oracle's exchange services to its global supplier and corporate customer base via the Oracle/Citigroup co-branded web site, thereby extending efficiencies and benefits to its global corporate and financial institutional customers.
"The world will end up with a few giant B2B exchanges - this is one of them," said Larry Ellison, Chairman and CEO of Oracle Corporation.
"Citigroup and its 100 million customers form the nucleus of a B2B exchange that should become one of the first of these global giants. Together, Oracle and Citigroup are providing the most complete, reliable and secure B2B e-commerce system on the Internet."