CIMB Group and Ripple have entered into a strategic collaboration to enable instant cross border payments across its various markets.
CIMB will join Ripple’s network «RippleNet» under a strategic collaboration on Thursday, facilitating its access to other RippleNet members and allow the regional lender to grow its cross-border payments business.
«We are delighted to be part of RippleNet. This innovative blockchain solution will revolutionise 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,» said Tengku Dato’ Sri Zafrul Aziz, chief executive of CIMB Group in a media statement.
Enhancing CIMB's Proprietary Remittance Product
Ripple’s blockchain-based solution has been deployed to enhance CIMB’s proprietary remittance product, Speedsend. This will expand the lender's network and open new payment corridors to improve consumer access to cross-border remittances, both inbound into ASEAN and outbound to other countries.
The solution is now live on Speedsend, enabling remittances via corridors such as Australia (in partnership with InstaReM, also a member of RippleNet), USA, UK and Hong Kong, said Malaysia’s second largest financial services provider by assets.
Expanding Use Cases
As part of the overall partnership roadmap, CIMB intends to extend the solution to other use cases across the Group. «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, chief executive of Ripple.
According to World Bank's projections, there is a growing demand for cross-border payment solutions, with remittances to Southeast Asia growing to US$ 120 billion by the end of 2018.
