Malaysian universal bank CIMB Group is partnering with blockchain startup Ripple to enable instant cross border payments across its various markets.
Headquartered in Kuala Lumpur, CIMB is Malaysia’s second largest financial services provider by assets. It offers consumer banking, commercial banking, investment banking, Islamic banking and asset management products and services. The bank has over 40,000 employees located in 18 countries, covering ASEAN and major global financial centers, as well as countries in which its customers have significant business and investment dealings.
Under its partnership with Ripple, CIMB will join the blockchain startup’s network RippleNet, which will facilitate access to other RippleNet members and allow CIMB to grow its cross border payments business. CIMB’s proprietary remittance product Speedsend also integrated Ripple’s blockchain solution xCurrent in order to expand the product’s network and open new payment corridors to improve consumer access to cross-border remittances, both inbound into ASEAN and outbound to other countries.
“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,” said said Tengku Dato’ Sri Zafrul Aziz, CEO, CIMB. 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 blockchain solution is now live on Speedsend, enabling remittances via corridors such as Australia, USA, UK and Hong Kong. The bank also intends to extend the solution to other use cases across the group.
“CIMB’s network already spans 15 countries, nearly 800 branches and offers Speedsend – one of the best solutions in the ASEAN region,” said Ripple CEO Brad Garlinghouse. “Now, by integrating Ripple’s blockchain technology, they will enable their customers to send vital funds to family, friends and loved ones more efficiently. With its focus on innovation, CIMB will continue to be a dominant force in the region for years to come.”
According to the World Bank, the total value of global remittances is forecast to rise to $642 billion this year, from $613 billion in 2017. Remittances to Southeast Asia is projected to grow to $120 billion by the end of the year.
“We’re seeing banks and financial institutions from across the world lean into blockchain solutions because it enables a more transparent, quicker and lower cost payments experience,” Garlinghouse said.
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