- Siam Commercial Bank set to work alongside PTTEP on international money transfer system
- New service will offer blockchain-based payments services which clear in a minute or so
- “We are now ready to take the success of this service forward to set a new norm for the industry”, says Siam Commercial Bank leader
A Thai bank has announced that it is collaborating with a leading worldwide payment system to improve remittance services for those looking to send money abroad.
The Siam Commercial Bank, or SCB, will work alongside PTT Exploration and Production Public Company Limited (PTTEP) to provide a business-to-business blockchain solution.
PTTEP is a petroleum exploration and production company supplying Thailand. As part of the collaboration, customers will be able to ensure that their online money transfer takes place in sixty seconds – which is substantially less than the 24 to 48 hour timeframe required for traditional remittance services.
The new services will be available across South East Asia, including the CLMV nations of Cambodia, Laos, Myanmar and Vietnam, by the end of 2019. When the new function goes live, it will be part of the RippleNet global payments network. This is as a result of Siam Commercial Bank’s pre-existing partnership with RippleNet.
Project leaders at the Siam Commercial Bank said that they hoped it would lead to “a new norm for the industry”.
“The project marks a major success in bringing a new international payment service standard for corporate customers using Blockchain technology”, said Wasin Saiyawan, SEVP and Chief Wholesale Banking Officer.
“The achievement reflects SCB’s commitment to harness the use of new technologies and innovations to transform business in the digital era. We would like to convey our appreciation to PTTEX for choosing SCB as a partner for this collaboration.”
“We are now ready to take the success of this service forward to set a new norm for the industry, enabling our customers to enjoy efficient and speedy service”, he added.
For PTTEX Finance and Accounting Group, its Executive Vice President Sumrid Sumneing expressed his intention for the two firms to “work closely”.
“PTTEX will work closely with SCB to continue using Blockchain technology for other financial transactions to optimize its digital competitiveness effectively and quickly”, he said.
The Siam Commercial Bank was the original Thai bank, and was setup back in 1907. It is now a leading Thai financial services provider and offers everything from asset management and life assurance to credit card and home loan options.
RippleNet, meanwhile, has spoken publicly about its relationship with Siam Commercial Bank. It has said that the bank was planning to make full use of its “multi-hop” functionality, which removes the traditional requirement for two participating financial institutions in a cross-border payment to have a pre-existing exchange set up.
“Siam Commercial Bank (SCB) will be the first financial institution on RippleNet to pioneer a key feature called “multi-hop”, which allows them to settle frictionless payments on behalf of other financial institutions on the network”, it said.
“This eliminates the need for a direct one-to-one connection (or bilateral relationship) between financial institutions to settle a payment”, it added.
Discover more about how firms around the world are making cross-border payments easier by taking a look at our magazine.
