A new financial group has decided to join one of the most innovative and fast growing financial networks. The CIMB Group, which is ASEAN’s fifth largest bank, has partnered with Ripple so as to enable cross-border payments for CIMB’s markets. The information was released by Ripple on November 14.
The company will be joining the popular RippleNet and it will be connected to other Ripple customers from all over the world. By being part of this network of more than 150 participants, CIMB wants to quickly grow its global payments business.
With this strategic partnership, the company will be leveraging blockchain technology to reduce costs and make international payments more efficient. The region has generally had inefficient and slow cross-border payments. In this way, the general industry becomes more modern and joins the blockchain world.
According to data provided by the World Bank that the Southeast Asia region will be registering an important growth of its remittances that will reach $120 billion dollars. At the same time, data from The Boston Consulting Group (BCG) the global cross-border payment industry is currently $27 trillion dollars. In the next years, the market could grow another $20 trillion dollars and 39% of it could be centred in the ASEAN region.
Ripple will be enhancing CIMB’s proprietary remittance product known as SpeedSend. This specific service allows customers to send and receive money in a very simple way with instant cash collection. The improvements will allow the institutions to reach new markets and improve transactions in some corridors such as those linking with Australia, the United Kingdom and Hong Kong.
Tengku Dato’ Sri Zafrul Aziz, CEO of the CIMB Group commented about this initiative:
“We are delighted to be part of RippleNet and look forward to a fruitful partnership with Ripple by leveraging each other’s strengths and capabilities. 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.”
Brad Garlinhouse, Ripple CEO, said that they see banks and financial institutions embracing blockchain technology because they allow transactions to be processed faster, more securely and paying fewer fees. By integrating Ripple’s blockchain technology, the company will allow families and individuals around the world to send funds in a very easy way.
Ripple is growing its presence in many other countries and regions. A few months ago, Ripple released the so-called xRapid product that uses the XRP virtual currency. With it, it is possible to reduce costs and transaction times even further.
At the time of writing, XRP is the second largest digital asset with a market capitalization of $18.53 billion dollars. Each coin can be purchased for $0.46 dollars.