RippleNet Builds Momentum
RippleNet is on an expansion spree. As part of its cross-border transfer platform expansion, it recently added Malaysian CIMB Group to its team. Incidentally, the other five largest ASEAN banks indicate a willingness to team up with Ripple’s cross-border payments technology.
The customer base of RippleNet constitutes more than one hundred global financial institutions. This new change will make global payments easier for CIMB clients. Due to the developments in blockchain, many big companies are now collaborating with RippleNet to derive benefits from its blockchain-based platform. Very recently Japanese banking giant MUFG signed a partnership deal with Brazil’s Banco Bradesco to develop cross-border payment service on the Ripple Network.
CIMB is on the cutting-edge when it comes to adopting technological development. Importantly, it is the first bank among the ASEAN group to accept blockchain into its operations. Its collaboration with RippleNet will help the bank offer benefits to its customers. The figures from World Bank reveal that Southeast Asia’s value of remittances is at $120 billion this year. The global market’s size for cross-border payments is much broader. The Boston Consulting Group (BCG) estimated SouthEasdt Asia’s annual bank transfer volume at around $27 trillion. With its RippleNet association, CIMB is possibly trying to establish itself firmly in this market and attract the customers, 40% of which are a part of the ASEAN market.
CIMB wants to use the blockchain technology-based solution of Ripple for improving SpeedSend, its existing remittance service. This development will lead to changes in SpeedSend’s service as now it will facilitate the payments across the ASEAN region. Currently, the service is available only for the Malaysian market.
Other Use Cases
Incidentally, the bank does not want to restrict the services of RippleNet only to its SpeedSend product. Rather it aims to extend it to all its other use cases. Tengku Dato’ Sri Zafrul Aziz, the CEO of CIMB Group said, “This innovative blockchain solution will revolutionize international cross-border remittances, and is a testament to CIMB’s ongoing efforts to enhance its digital banking proposition by providing speedy and cost-efficient solutions to our customers across ASEAN.”
The CEO of Ripple, Brad Garlinghouse stated that CIMB’s network serves 15 countries through its 800 branches and offers SpeedSend solutions to its ASEAN customers.