SBI Remit, an international money transfer service within SBI Group, is partnering with Siam Commercial Bank (SCB), the first Thai bank established in 1904, over the introduction of express remittance service from Japan to Thailand. The new deal underpinned by Ripple technology, a distributed ledger payment protocol, will allow customers to send money in Japanese yen to savings account at SCB within a matter of seconds.
Reports show that the volume of money transfer transactions is increasingly growing between Japan and Thailand, reaching about USD250 million but the process may take up to several days with the fees making up 5-7% per a transaction, and, which is more, customers may have no opportunity to check if the funds have actually arrived.
The two companies believe that the fast money transfer functionality will enable them to tap into the revenue rated at $10-15 million annually.
Nobuo Ando speaking for SBI Remit notes that Ripple protocol was an exciting solution for their pursuit of delivering superior technologies for money transfers. He adds that more excellent possibilities can be expected as Ripple is continuously expanding its network reach. Given this fact SBI Remit is encouraging other financial institutions to join the trend for the provision of competitive money transfer services to customers.
In the long run the transfer service will also be offered to other markets including North America, Europe and Asia Pacific.