Citigroup and Oracle have entered a wide-ranging technology and business alliance for integrated payments and B2B e-commerce transacting.
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 the CitiConnect B2B settlements engine.
Jorge Bermudez, executive vice president, Citibank e-business comments:"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 e-marketplace 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."
The agreement, in which Citigroup qualifies as a "Strategic Affiliate" of Oracle, also creates a co-branded online marketplace through which Citigroup will transact its internal spending. Citi will market Oracle's exchange services to its global supplier and corporate customer base via this co-branded Web site.
"The world will end up with a few giant B2B exchanges - this is one of them," says 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."