Malaysian CIMB Group, the 5th largest banking group in the Association of Southeast Asian Countries (ASEAN) has formed a strategic partnership with Ripple to ensure that cross-border payments across numerous markets are instantaneous. The partnership allows CIMB to take advantage of Ripple’s network known as RippleNet by bringing CIMB closer to members of RippleNet and by facilitating the progressive growth of CIMB’s cross-border payment business.
The focus of this partnership is to use Ripple’s blockchain technology to develop and expand CIMB’s money transfer platform Speedsend. CIMB believes that the partnership will expand their money transfer service and “open new payment corridors to improve consumer access to cross-border remittances, both inbound into ASEAN and outbound to other countries,” thus “enabling remittances via corridors such as Australia (in partnership with Instarem, also a member of RippleNet), USA, UK and Hong Kong”. According to CIMB’s press release, “CIMB intends to extend the solution to other use cases across the Group.”
With much enthusiasm on the strategic partnership, Ripple stated, “The World Bank projects that this year alone remittances to Southeast Asia will grow to $120 billion. Additional data from The Boston Consulting Group (BCG) suggests that the size of global market for cross-border payments volume is $27 trillion, and another $20 trillion could be up for grabs between 2018-2026. Approximately 39% of this remittance market is centered in the ASEAN region.”
In the same light, the chief executive officer of CIMB Tengku Dato’ Sri Zafrul Aziz said, “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.”