SBI Group Introduces Blockchain-Based Money Transfer Service Between Japan And Vietnam
Nicholas Otieno Nov 20, 2019 02:30
SBI Ripple Asia recently announced that it has joined hands with SBI Remit to provide money transfer services between Japan and Vietnam using blockchain technology. Of course, the two Japanese companies are working with a local Vietnamese bank – Tien Phong commercial joint stock bank – for making the transfer in fiat currency.
SBI Ripple Asia recently announced that it has joined hands with SBI Remit to provide money transfer services between Japan and Vietnam using blockchain technology. Of course, the two Japanese companies are working with a local Vietnamese bank – Tien Phong commercial joint-stock bank, for making the transfer in fiat currency.
SBI Group is the holding company that controls SBI Ripple Asia and SBI Remit as separate subsidiaries. While SBI Remit provides international money transfer services to clients, SBI Ripple Asia provides distributed ledger technology and blockchain-based fintech solutions to clients.
Blockchain is changing money transfer
According to the latest report, Vietnam’s Tien Phong Bank (TPBank), SBI Ripple Asia, and SBI Remit have just introduced the first money transfer services between Vietnam and Japan using RippleNet distributed ledger technology.
The CEO of Vietnamese TPBank, Nguyen Hung said that their partnership with SBI Ripple Asia on the use of blockchain technology in cross-border money transfer marks a significant turning point in enhancing their customer experience. He further recognized that the application of blockchain makes an international money transfer via TPBank safer, more convenient, and faster than ever before.
Nguyen disclosed that transactions are now being processed faster while ensuring cash flows, transparency, and safety are legally transferred via foreign banks to Vietnam. He explained that transactions at TPBank are ensured to comply with all foreign and domestic regulations and anti-money laundering laws.
On the other hand, Yoshitaka Kitao – a representative of SBI Group – praised the progressive stance that TPBank has made towards adopting cutting-edge technologies. He mentioned that SBI Ripple Asia is intending to adopt RippleNet to provide remittance services of crypto-assets in the future. He added that such adoption will further distinguish the firm from its competitors.
Meanwhile, RippleNet blockchain is a trusted platform network that many payment providers, financial institutions, and banks use to speed up remittance transactions. RippleNet platform is a preferred choice because of its existing relationships with other banks across the world. Ripple is aggressively expanding in global markets. Recently, the firm partnered with Finastra in the UK to allow its customers to access cross-border payments services using RippleNet.
The SBI Group eyes Vietnam market
Yoshitaka identified the booming Vietnamese economy as one of the most attractive markets across the world. The SBI Group owns a 19.9% share of TPBank and invested in the bank since 2009. TPBank has steadily accumulated non-interest income and loans like settlement services, by actively deploying cutting-edge technologies.
In 2017, TPBank became one of the top banks in Vietnam with assets more than $5.3 billion. The bank focuses on e-banking and digital transformation and has a money transfer app that enables customers to send money with a QR code.
Japan has a huge number of Vietnamese populations who live in the country. The number increased 4.57 times over the last five years to reach over 330,000 by 2018.
SBI has been keen to see potential opportunities in untapped markets. No wonder, the company has rushed to launch the first money transfer services between Vietnam and Japan.
Image via Shutterstock
Image source: Shutterstock
