Indian Private sector Axis Bank today became the third lender in the country to announce usage of Blockchain solutions for its operations, after its peers ICICI Bank and Yes Bank.
According to a report in The Economic Times of India the Shikha Sharma-led bank, the third largest private sector lender, will be using the upcoming technology for cross-border remittances.
“We are committed to using innovation in technology to make banking simple and convenient for our customers,” deputy managing director V Srinivasan said. He said remittances have been a key strategic area for the bank and the Blockchain technology will enable real-time affordable money transfers.
Axis has cut a deal with Blockchain company Ripple to offer the cross-border payments solution.
Ripple is a financial settlements solution (based on Blockchain technology) that reduces the time and cost of transactions significantly. Axis is the first bank in India to partner with Ripple.
The technology can enable instant international money transfers (today international money remittance could take anywhere from 3-5 days) and improve efficiency of payments for Axis Bank through instant and automated reconciliation with partner banks.
More from the Economic Times:
“Given its status as the fastest-growing major economy in the world and the top market for remittances, India is a very important market that is ripe for payments innovation,” Brad Garlinghouse, the chief executive of Ripple, said.
Axis Bank’s larger peer ICICI Bank was the first to announce a Blockchain solution for international trade finance and remittances last October. This was followed up by mid-sized rival Yes Bank last week under which it will be using the technology for vendor financing.