RAKBank, a commercial bank based in the United Arab Emirates (UAE), has refined its money transfer options to Bangladesh by integrating with Ripple’s blockchain technology and offering RAKMoney Transfer (RMT). The new instant money transfer service will be free for all customers, commencing on June 30th, and partnered with Bank of Asia,
Ripple’s Commitment to Innovation
With this announcement, it would appear that Ripple Labs is fulfilling its promise of reducing XRP sales to focus on technical innovations and to increase its product market in 2020.
Ripple has been a leader in monitoring the world’s transition to instant cross-border payments with reduced friction. Asa result, It is the only blockchain company in the ISO 20022 body and the first member to focus on Distributed Ledger Technology (DLT).
RippleNet promises its users access to new global markets and the provision of the best customer experience. Its network has more than 300 financial institutions worldwide, including MoneyGram, Santander, TransferGo, and RAKBANK.
The company is competing for a significant portion of the trillion-dollar market from SWIFT, which although well-known, is not yet technically updated. This technical lag will delay its compliance with ISO 20022 for the next two years.
Details of the Ripple and RAKBANK partnership
According to a post on RAKBANK’s official website, the bank’s RMT banking service facilitates immediate money transfers to Bank Asia accounts and any other bank account in Bangladesh within 24 hours.
The announcement of the partnership is timely considering that the world is seeking cheaper and faster means of money transfer, due to the coronavirus transmission rate. RAKBANK users can now enjoy the latest technology provided by Ripple, and the use of XRP also may be offered at some point in the future.
RAKBANK’s CEO Peter England stated “In line with our strategy to put our customers’ needs at the core, this solution empowers Bangladesh expatriates to instantly and securely send money back home to Bangladesh in just a few simple clicks through our award-winning digital banking app, with no hidden fees and at competitive rates.”
Bank of Asia’s President and CEO of Asia Bank Arfan Ali concurred, claiming that “We are happy to partner with RAKBANK to offer this new instant remittance solution to our expats. This solution is going to mark a new chapter in the history of remittance in our country. Considering the current Covid-19 pandemic situation, we have jointly waived remittance charges to help our ex-pats send money easily to their beloved families back home.”
However, the new partnership does not determine whether the bank will take advantage of ODL services.