Thailand headquartered CIMB announced plans to use RippleNet for cross-border payments. The bank is the fifth largest in the ASEAN and has a presence in 15 countries. According to Ripple, the ASEAN region represents 39% of the global remittance market. The World Bank estimates that South East Asia remittances will reach $120 billion this year.
RippleNet in many ways is a modern blockchain enabled version of SWIFT with far greater transparency and two way messaging. That makes remittances quicker particularly if there are issues which often delay a significant minority of cross-border payments while intermediate banks email queries back and forth. Using RippleNet does not require the use of a digital asset, only Ripple’s xRapid product requires that.
CIMB already has a proprietary remittance product called SpeedSend where the backend is being integrated with RippleNet for specific payment routes. It’s using the service for remittances to and from Australia, USA, UK and Hong Kong.
“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,” said Tengku Dato’ Sri Zafrul Aziz, CEO, CIMB Group.
Japan’s MUFG in Brazilian payments deal
Last year Japan’s largest bank, MUFG, announced it would join RippleNet. Earlier this week it confirmed it has inked a memorandum of understanding with Brazilian bank Banco Bradesco for cross-border payments using Ripple.
MUFG is also a member of SBI Ripple Asia which is a Japanese domestic payments network. The consortium of sixty banks aims to enable Japanese bank transfers outside of conventional banking hours. A month ago the group launched its MoneyTap mobile phone app with three banks initially.