Ripple Collaborating with ASEAN Banking Giant CIMB
Ripple has just made another major business collaboration, this time with one of the biggest banking groups in Southeast Asia, CIMB.
CIMB Group joins Ripplenet
The CIMB Group, one of the largest banks located in the Association of Southeast Asian Nations (ASEAN) region, is collaborating with Ripple so it can utilize RippleNet for its cross-border payment system. This will enable CIMB to connect with more than a hundred other financial institutions already connected to the RippleNet system with respect to global transactions.
The CIMB Group is a Malaysian-based financial institution that operates in many developing countries that are members of the ASEAN. It has over 40,000 employees with more than a thousand branches in 18 countries.
The move to leverage blockchain technology aims to make CIMB Group’s international payment system faster and cheaper for its clients. This may give it an edge in the Southeast Asian market where international money remittances are big business and existing services are both slow and costly for many consumers.
This collaboration could not have been more timely as international remittances, especially in Southeast Asia, have been growing at a dramatic rate. This trend will likely go higher as countries in the region continue to post significant economic growth. In fact, the World Bank projects incoming remittances to the region to grow to $120 billion this year.
Utilizing Ripple’s blockchain-based solution will greatly enhance CIMB’s remittance solution, SpeedSend. This remittance service lets its clients send and receive money by directly crediting the funds to their accounts and also through instantaneous fund collection. Using Ripple’s cross-border remittance solution will greatly improve CIMB’s cross-border remittance capability.
This improvement works for both incoming money transfers to ASEAN countries as well as outgoing money transfers to other countries. The enhanced system has already established remittance channels in Australia, Hong Kong, the U.K., and the U.S.