Ripple’s expansion continues. The Saudi Arabian Al Rajhi Bank [Largest Islamic Bank] has just announced that it has run a successful trial using Ripple technology to transfer money from Saudi Arabia and Jordan between bank branches.
The firm behind the technology – Ripple, is a company with HQ in San Francisco that particularly works in financial solutions that banks and similar entities are finding very attractive to try out and implement. The work that Ripple delivers is based on blockchain tech, that finds use of a shared ledger to complete the transactions. That is why various financial giants want to be test it out as the network make sit possible for assets to move directly, freely and instantly which concludes with reduced cost and time.
While banks and other financial institutions do find leverage in their role as guarantors for resolving payment-based uncertainties with a large premium, blockchain delivers the crypto-hashing system for proof-of-verification [like a virtual guarantee] which directly sets borders for the need of brokerage in various parts of the financial ecosystem – saving time and money.
According to a press writing on Ripple Insights – The National Bank of Abu Dhabi [NBAD] is the first bank to use the solution of that Ripple delivers for real-time cross border payments.
Ramana Kumar, Managing Director & Head of GTB Business and Product Management, said: “At NBAD we strive to ensure our offerings are efficient and transparent. Blockchain technology transforms and paves a new way in achieving our goals and better serve our customers, adding value through accessibility and transparency. As an initial adopter and first bank to go live on Ripple, NBAD offers innovative solutions to our clients payments needs.”
The UAE is ranked as the fourth top remittance sending country in a global scale, counting above $19 bil – based on the World Bank Migration Remittances Factbook . From that it is easy to conclude that the could-be-gained profit for NBAD’s costumers is crystal clear.
Al Rajhi joins a growing list of institutions, including MUFG BAML, Santander, Bank of America Merrill Lynch, Santander, Standard Chartered, Westpac Banking Corporation, Royal Bank of Canada and CIBC and RBC are a number of banks that are in the process of or are already using Ripple technology to streamline their transaction processes.