RippleNet is expanding its network of banks by adding Malaysia’s CIMB Group to its fold. CIMB is the ASEAN’s fifth-largest bank and will team up with Ripple to work on enabling instant cross-border payments for CIMB’s markets.
RippleNet’s customer base now constitutes over a hundred global financial institutions, which CIMB will be able to partner with, facilitating global payments.
Despite being on the cutting-edge of technological development, CIMB is one of Southeast Asia’s first banks to turn to the blockchain for faster, easier payments. Partnering with RippleNet will allow the bank to pass on this benefit to its customers, many of whom currently live with slow and inefficient procedures.
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.
RippleNet’s Blockchain-Based Solution
CIMB will be using Ripple’s blockchain-based solution to improve its existing remittance service, SpeedSend. This service currently enables users to send and receive funds and includes features like direct account credit and instant cash collection.
However, incorporating Ripple technology will mean that SpeedSend will not be limited to Malaysia but will facilitate payments throughout the ASEAN region. They will be able to send cross-border payments hassle-free.
CEO of CIMB Group Tengku Dato’ Sri Zafrul Aziz, 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.”
Ripple’s CEO, Brad Garlinghouse, also commented on the partnership, 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.”
CIMB doesn’t only plan on using RippleNet for its SpeedSend product but aims to roll it out to other use cases as well.