Ripple Partners with Southeast Asian Giant Bank CIMB. CIMB is ASEAN’s fifth-largest bank, to work on enabling instant cross-border payments for CIMB’s markets. With the addition of the CIMB Group into its fold, RippleNet is expanding its network of banks.
RippleNet has the customer base of over a hundred global financial institutions. CIMB will be able to partner with now, facilitating global payments. However, CIMB became one of Southeast Asia’s first banks to turn to blockchain for faster, easier payments. This partnership with RippleNet will allow CIMB to pass on the benefits to its customers.
Southeast Asia receives a large number of remittances every year. According to the World Bank, the number of remittances received by Southeast Asia in 2018 is a mammoth $120 billion. The size of the global market for cross-border payments is even bigger, with the Boston Consulting Group (BCG). However, this estimates an annual volume of $27 trillion. Also, this is a massive market for CIMB to gain a foothold in, considering that almost 40 percent of this is in the ASEAN region.
CIMB will use Ripple’s blockchain-based solutions to improve its existing remittance service: SpeedSend. Similarly, this service currently enables users to send and receive funds and includes features like direct account credit and instant cash collection. However, incorporating Ripple technology will mean that SpeedSend will not be limited to Malaysia, but will be able to facilitate payments throughout the ASEAN region. They will be able to send cross-border payments hassle-free.
CEO of CIMB Group Tengku Dato’ Sri Zafrul Aziz, said:
“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 Partners with Southeast Asian Giant Bank CIMB. Ripple’s CEO, Brad Garlinghouse, also commented about the partnership, saying:
“CIMB’s network already spans 15 countries, nearly 800 branches and offers SpeedSend–one of the best solutions in the ASEAN region. Now, by integrating Ripple’s blockchain technology, they will enable their customers to send vital funds to family, friends and loved ones more efficiently.”
However, CIMB doesn’t plan on only using RippleNet for its SpeedSend product. Also, it aims to roll it out to other use cases as well.