Ripple Network Shows Fantastic Results After SAP And ATB Cross-Border Payments Project
Blockchain technology is changing the way in which financial institutions work, and this can be seen with the latest developments related to the Ripple Network. Falk Rieker, Global Head of Industry Business Units for Banking at SAP, talked about how traditional financial institutions are using Ripple for cross-border payments.
He explained that banks all over the world are using blockchain technology because it has several advantages compared to other systems. Banks and institutions want to adopt and embrace it because they do not want to lag behind other competitors.
Alberta Treasury Branches (ATB), is a Canadian financial company that focuses on business and retail banking activities. The company is a very important customer of SAP. And indeed, ATB has been working in order to re-platforming its operations to SAP.
Rieker explains that the firm was searching different ways to innovate and search new interesting solutions for its clients. This was one of the reasons why ATB decided to approach Ripple and embrace its technology for cross-border payments. With this decision, the company will be able to deal with cross-border payments with other countries in a very simple and easy way, reducing costs and increasing efficiency.
Once the process was finalized, the plan took just 10 days to be finalized. The project included creating a mobile web application and connect it to the Ripple Network. On this way, the company was able to send live transactions from Canada to Germany.
About it Rieker commented:
“So what we were able to achieve in that proof of concept was that normally it takes the banks around three days could be two could be six, but on an average 3 days to send this transaction through multiple intermediaries.”
With the latest implementations, transactions were processed in just 20 seconds. Customer experience and the overall service substantially improve with this development.
Ripple is working all over the world trying to increase the number of parties interacting through the Ripple Network. Asia is one of the most important hubs for the company, where it has an office.
In the future, new financial institutions and entities could join the network and start benefiting as well with reduced transaction times and operative costs for cross-border transactions.