Citi, America Movil unveil m-banking venture

Citigroup has entered into a joint venture with telecommunications provider, America Movil to provide Latin Americans with mobile banking services, eMoneyDaily sates.

The alliance, named Transfer, will involve an investment of $50 million, and will begin in Mexico, by the first quarter of next year.

According to BBR, Transfer will enable customers to use mobile phones to open bank accounts, transfer money, withdraw cash from ATMs, shop, receive payments and pay bills.

Initially, the service will be offered to clients of Banamex, Citi's Mexican subsidiary, and Telcel, America Movil's Mexican mobile telephone company.

Citi president and director-general for Mexico and Latin America, Manuel Medina-Mora, said the governments could use Transfer as a platform for making benefits available to the poor, as well as for civil service payroll.

IntoMobile states this will be an open service that will allow other banks and operators to join the game as well. The two companies are also eyeing governments as potential clients to allow them to more easily pay civil servants' wages and distribute subsidies to the poor.