November 20, 2018. CIMB, a banking group in Malaysia chose the Ripple blockchain over Ethereum to run its cross-border payments to make it easier and faster. This move is reported to greatly lower the cost of international payments as well as make it more efficient.
With the introduction of Ripple’s RippleNet to help aid in making transactions faster and easier, this also aims to help the ASEAN market cut expenses in terms of international payments.
CIMB’s current remittance system, SpeedSend, is now cost-efficient and faster. This makes sending money abroad like the USA, Australia, Hong Kong, and UK almost seamless. These stretches its reach from the previous countries it supported: Philippines, India, Japan, Thailand, and Singapore.
With its partnership with Ripple, CIMB will also explore other options on how to use Ripple’s technology.
“We are seeing banks and other financial institutions from all over the world use blockchain-based solutions because they understand that it offers cheap, quick and transparent solutions. This counts whether it is applied in the financial space or any other space.” – Mr. Brad Garlinghouse, CEO, Ripple
Another Ripple powered initiative called SendFriend will help cut remittance costs to and from the United States and the Philippines. Currently, it is still in the development stage and is expected to be up and running before the year ends. It is also catered to Filipinos and migrants living in the US who want to send money to the Philippines at an affordable cost.
In the Philippines, UnionBank of the Philippines has been using the Ethereum blockchain to make under-the-hood blockchain executions. According to its chairman, Mr. Justo Ortiz, by using simple blockchain solutions, it was able to save around 30%.
Ethereum is also the same platform that runs the bank’s Project i2i that will help rural banks in far-flung areas get connected. The project was piloted by five banks namely: Cantilan Bank Inc. of Surigao del Sur, PR Savings Bank, City Savings Bank, FairBank, and Progressive Bank.