Citi has again been named the sole settlement and depository bank for the Philippines Domestic Dollar Transfer System (PDDTS) despite challenges due to changing market conditions.
Under the agreement, Citi will remain the exclusive settlement bank to PDDTS for the next three years, a position it has continually held since its inception in 1994. PDDTS was established to provide faster and more efficient means to remit US Dollars from one PDDTS participant bank to another on the same day. Prior to PDDTS, such transactions had to be cleared through New York.
As settlement bank for the PDDTS, Citi acts as clearing agent for real-time gross settlement (RTGS) transactions in the Philippines. In this function, Citi provides settlement for all US Dollar RTGS transactions, US Dollar netting transactions and all payment versus payment foreign exchange transactions. As part of its commitment to Philippines, Citi and PDDTS will also explore introducing new currencies to its existing settlement solution suite as user demand expands.
Citi was selected as sole settlement bank for the PDDTS by a committee comprising of the Bankers Association of the Philippines (BAP), Philippine Clearing House Corporation and Philippines Securities Settlement Corporation.
Citi's winning proposal leveraged on its outstanding experience and track record, dedicated on-the-ground support for PDDTS and unparalleled breadth and depth of Citi's franchise in the Philippines.
Commenting on the reappointment of Citi as sole settlement bank to PDDTS, Akash Rathke, Managing Director and Citi's Regional Head of Banks Services and Public Sector Group, Global Transaction Services said: "The new mandate extends our unparalleled record as sole settlement bank for PDDTS and significantly underscores our leadership and dominance in providing market leading cash management solutions in Asia Pacific. By winning this important mandate for another three years, Citi has received a strong vote of recognition by the PDDTS and demonstrated our ongoing commitment to the Philippines."
Through the years Citi has consistently maintained a 95% customer satisfactioon rating as PDDTS Settlement Bank. Over the course of this partnership, Citi has also worked on several key initiatives, investing in the PDDTS infrastructure in terms of technology, operations, customer service and electronic banking support.
For users of PDDTS, Citi will continue providing dedicated customer service through CitiService to assist the PDDTS participants with service inquiries including general product information, balance and statement inquiries, transaction investigations, requests for technical support, and information on banking practices. Additionally, Citi will continue offering PDDTS participants a dedicated product management team who are responsible for closely monitoring all aspects of the product, particularly operations, technology, regulatory, pricing, and market changes.