Ripple Adds CIMB as Latest Major Clients
CIMB group ASEAN’s (Association of Southeast Asian Nations) fifth largest bank entered a mutual collaboration with Ripple. According to Ripple, the partnership will enable CIMB to conduct instant cross-border payments across CIMB’s vast market base. The bank will join Ripple and connect with the other hundreds of Ripple powered financial institutions and banks.
CIMB realized the benefits of blockchain powered banking system early enough to become the region’s first bank to use blockchain products. Industry report shows that blockchain provides a faster and more cost efficient international payment solutions. Moreover, it is a historical fact that the region for a long time had a slow costly remittance system.
“We are delighted and look forward to a fruitful partnership with Ripple by leveraging each other’s strengths & capabilities. This blockchain solution will revolutionize international cross-border remittances. It is testament to CIMB’s ongoing efforts enhance its digital banking proposition to customers across ASEAN,” says Tengku Dato’ Sri Zafrul Aziz, CEO at CIMB Group.
According to reports from the World Bank, remittances to Southeast Asia is to grow to $120 billion this year alone. Another data from the Boston Consulting Group (BCG) indicated that the cross-border money transfer market is worth $27 trillion. The same group projects that this figure could even go up by an additional $20 trillion from 2018-2026. Furthermore, the researcher deduced that close to 39 percent of the remittance market is based in the ASEAN region.
Ripple Easily Taking over Traditional Banking Solution Providers
Ripple managed to deploy its blockchain based solution to many banks and financial institutions across the globe. According to inside sources within Ripple, CIMB subscribed deployed Ripplenet to enhance its proprietary remittance product call SpeedSend. A service that allows customers to send and receive money with direct account crediting and instant cash collection.
The same source explained that the enhancement improves CIMB customers’ access to cross-border remittance globally. The improvement based on enhancing transactions both within ASEAN and other outside countries. The system is already enabling remittances to corridors such as Australia, USA, UK, and Hong Kong.
Ripple CEO Brad Garlinghouse revealed that as part of the overall partnership roadman, CIMB applies the solution in other applications.
“We’re seeing banks and financial institutions from across the world lean into blockchain solutions because it enables a more transparent, quicker and lower cost payments experience,” said Brad Garlinghouse, Ripple CEO.
CIMB’s network already spans 15 countries, about 800 branches and provides Speedsend. Moreover, this is 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. Additionally, CIMB will continue to be a dominant force in the region for years to come.”