RippleNet is expanding its network once again by adding Malaysia’s CIMB Group to its fold. The group is the fifth biggest bank in Southeast Asia and will team up with Ripple to work on enabling instant cross-border payments for CIMB’s markets.
RippleNet’s customer base will now establish over a hundred global financial institutions which CIMB will be able to partner with, facilitating global payments.
Even though it is on the edge of technological development, CIMB is one of the first banks in Southeast Asia to look to blockchain for easier and faster payments. By teaming up with RippleNet, this will allow the bank to pass on this benefit to its customers, many of which currently live with slow and inefficient procedures.
As reported by CCN:
“World Bank figures place the value of remittances to Southeast Asia at a massive $120 billion in 2018. But the size of the global market for cross-border payments is even bigger, with Boston Consulting Group (BCG) estimating an annual volume of $27 trillion. This is a massive market for CIMB to gain a foothold in, considering that almost 40 percent of this is in the ASEAN region.”
The banking group will start to use Ripple’s blockchain based solution to improve its existing remittance service, SpeedSend. With this service, users are able to send and receive funds and include features such as direct account credit and instant cash collection.
However, with the incorporation of Ripple technology, this will result in SpeedSend not being limited to Malaysia but will also facilitate payments throughout the ASEAN region. They will be able to send cross-border payments hassle-free.
Tengku Dato Sri Zafrul Aziz, the CEO of CIMB Group spoke on the matter saying:
“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.”
Ripple’s CEO, Brad Garlinghouse also spoke on the two joining up saying:
“CIMB’s network already spans 15 countries, nearly 800 branches and offers SpeedSend–one of the best solutions in the ASEAN region. Now, by integrating Ripple’s blockchain technology, they will enable their customers to send vital funds to family, friends and loved ones more efficiently.”
Even though CIMB doesn’t only plan on using RippleNet for its SpeedSend project but looks to roll out other use cases too.
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