Finablr’s UAE Exchange partners Ripple to launch cross-border remittances in 2019
In an interesting move, one of the leading remittance firms in the United Arab Emirates (UAE), Finablr’s UAE Exchange has entered into a strategic partnership with the San Francisco-based startup Ripple to facilitate cross-border remittances in Asia based on the blockchain. It aims to start its operations by the first quarter of 2019, as per a report by Reuters.
Asia has been the leading recipient of global remittances sent for quite some time now and last year also it led the way by accounting for a huge chunk of the total $613 billion in remittances sent globally. Founded in 1980 by BR Shetty and based in Abu Dhabi, the UAE Exchange has been at the helm of the remittance business in the Middle East.
A large part of it comes from expatriates residing in the Middle East and the UAE Exchange plays an important role there. According to a World Bank report, global remittances are going to increase to $642 billion by the end of this year with the ASEAN region accounting for nearly 39 percent of the overall remittances market.
Currently, the transfer of fund takes place through foreign exchange branches but now things are changing and people are getting accustomed to using apps and websites for the transfer of money and blockchain innovation is there waiting on the horizon, which is going to be the next big step in the evolution of financial transactions. It is this much-awaited transition that the UAE Exchange and Ripple are trying to capture and they want to be the first in this space to make an impact.
Speaking about the use of blockchain for the cross-border payments, Promoth Manghat, Executive Director and Chief Executive at Finablr said, “Blockchain holds tremendous promise for the industry but there is progress to be made before we see it go fully mainstream. We expect to go live with Ripple by Q1, 2019 with one or two Asian banks.”
RippleNet is a global decentralized payments network of banks and payment providers, which is expected to help the lender expand its global payments business faster. It has already more than 100 members and it facilitates cross-border payments by enabling quick messaging and faster settlement of transactions.
Some of the leading names in the Middle East that have joined RippleNet network include National Bank of Ras Al Khaimah (RAKBANK), Kuwait Finance House, and Standard Chartered.
“We are also looking at how Ripple can enhance our business-to-business solutions at Finablr,” Manghat added.
The UAE Exchange is trying its best to make its presence felt global remittance market and it is planning to increase its share to 10 percent by 2020. And to achieve that goal it has taken this step to enter into a partnership with Ripple.
Image via Shutterstock
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