Bank customers — both consumers and businesses — have spoken and they demand a faster way to send money globally.
Krungsri (Bank of Ayudhya PCL), one of the largest banks in Thailand, heard the call, and in an effort to better serve their customers, they joined RippleNet to remove the friction from cross-border payments.
In fact, Krungsri now uses Ripple’s enterprise blockchain network to help a large Southeast Asian petrochemical company, send real-time cross-border payments to its foreign customers — a first for financial institutions in the Thai region.
Breaking with the status quo for the good of the customer
The collaboration between Krungsri and the large petrochemical company was born from a common pain point for most corporates: Customers were dissatisfied with the lack of speed and visibility into cross-border payments.
When the company attempted to send payments to their partners it would take several days to complete the transaction.
What’s more, neither the sender nor the receiver had visibility into the status of the payment — which was very frustrating for the petrochemical company’s customers.
If the company continued to use the typical, slow, opaque payments process, then they risked losing valuable foreign partners, which would be detrimental to their bottom line.
That’s when Krungsri stepped in to help their long-time customer.
Krungsri President and Chief Executive Officer Mr. Noriaki Goto said, “We have gained trust from the large petrochemical company, our long-time major business partner, to deploy RippleNet for the money transfer between the company and its overseas trading partners.”
RippleNet-enabled Krungsri provides innovative solution to client
By using Ripple’s blockchain network, Krungsri is not only able to provide a real-time cross-border payment flow for the petrochemical company, but also provide complete transparency into when the payment would be received.
“The transactions were successfully completed within a few seconds versus at least one to three business days under the previous system. This reflects the innovative strength of Ripple’s technology that will drive the Thai business sector towards faster expansion,” added Mr. Goto.
The success of the large petrochemical company’s deployment marked a significant change in the financial landscape for Krungsri, who will continue to reap the benefits from using RippleNet’s blockchain network.
As a subsidiary of Mitsubishi UFJ Financial Group (MUFG) — Japan’s largest financial group and one of the world’s five largest financial institutions, with more than 2,000 branches in over 50 countries — Krungsri is positioned to provide instant global payments to service their corporate customers’ needs.
“Using RippleNet will be a catalyst to use additional financial innovations to deliver real-time cross-border payments for other business partners,” concluded Mr. Goto.
Learn how Ripple has helped other corporate modernize global payments.