Last week, the Saudi British Bank (SABB) has launched its instant cross-border payment service based on blockchain technology of Ripple.
This represents a further step forward for the banking giant towards “digital transformation and enrichment of customer experience".
SABB and Ripple's Blockchain
SABB is a multi-billion dollar banking giant that currently controls over $ 50 billion in assets.
Last year, in January 2018, SABB joined the blockchain network of Ripple with the approval of theSaudi Monetary Authority (SAMA).
By the end of December 2018, SABB has processed its first payment in Indian Rupee / INR, using Ripple's blockchain technology.
Majed Najm, the deputy managing director of SABB, defined it as "a fundamental step initiated by the banking giant in improving banking services".
Najim has found that, thanks to the technological implementation, SABB intends to use systems that allow to save time and improve the quality of the service offered to its customers.
Furthermore, this strategic initiative will also strengthen the position of SABB as “leading global bank".
Najim added: "SABB offers its customers cross-border payment services faster, safer e more transparent with the launch of Ripple's Blockchain technology. [...] This strategic plan aims to provide customers with a service of great added value and to connect multiple countries and currencies in the near future in a smart way".
This strategic partnership can allow Ripple to pursue a real advantage over other cryptocurrencies.
Ripple - Compete with SWIFT
The emergence of blockchain technology the dynamics of the global banking system is changing.
Riding the wave of blockchain technology, Ripple is slowly emerging as one of the main competitors of the Swift.
For this reason, Ripple needs to increase XRP's liquidity and improve the usability of the Ripple blockchain network.
The CEO of Ripple, Brad Garlinghouse, in November 2018, speaking at Bloomberg, Garlinghouse stated:
"The technologies that banks use today, in reality, have not evolved".
While Ripple intends to emerge as a leader in blockchain-based bank payment systems, the road ahead is not easy.
This is because the Wall Street banking giant JPMorgan is already working on his blockchain.