South-East Asian DBS Bank Calls Ripple The ‘Cheapest Method’ For Cross Border Payments
For people closely associated with the crypto ecosystem, it might have come of no surprise that a bank called Ripple the best way to make global transactions. Now, DBS bank has acknowledged the same.
The report goes on to mention:
“Fintechs are also looking to disrupt cross-border payments. Most fintech solutions currently available are in the retail space and tend to focus on reducing foreign exchange spreads. Ripple is an example of a fintech looking to disrupt correspondent banking for cross-border payments at commercial scale.”
DBS is a leading financial services group in Asia and has always been at the forefront of creating and delivering best-in-class solutions for its customers. It is headquartered in Singapore. They have 24,174 employees and bring in about $10 billion in revenue per year.
The reports say that usually, corporates try to minimize the cost of payments. All else being equal, domestic payments will be cheaper than cross-border payments, and this is a driver for IHB and cross-border ACH. For cross border payments, SWIFT/ Telegraphic transfer is the most expensive, Cross-border ACH is slightly cheaper, whereas Ripple is the cheapest.
The standard system (SWIFT) takes too long to settle payments, it’s too expensive, and it’s also unreliable. It even has an error rate of 6%. It takes a lot of time, and every transaction includes a fee which the client has to pay. And that’s why Ripple technology is better.
Ripple’s mission has been to solve the international payments problem since the beginning. It has secured strategic partnerships with more than 200 banks and remittance services scattered all over the planet.
On average, Ripple recruits a new partner every week. Among those partners, you can find some of the world’s most important financial institutions such as Banco Santander, MoneyGram, and Western Union.