Saudi Arabia British Bank (SABB) and India-based IndusInd Bank have partnered to launch a Ripple- powered remittance corridor between the countries.
SABB’s head of global liquidity and cash management Ghada Al Jarbou said that the digital remittance product is intended to address its low penetration in the domestic remittance market.
Jarbou added that most of the bank’s customers use third party providers for remittances.
Meanwhile, IndusInd Bank expects the remittance corridor to improve its footprint in the Indian remittance market, while providing opportunities for new geographies and alliances.
The bank’s head of transaction and banking sales Amit Talwar noted that multiple new inbound partner leads have been created from banks that work with Ripple in other markets.
According to Ripple, the first transaction via the new remittance corridor occurred on 23 December last year and took just seven minutes for end-to-end transaction.
The transaction time has been further cut down to three minutes and is expected to further lessen over time.
The product is said to offer transparency for customers, allowing then to view the initiation and closing of transactions. SABB intends to enhance this feature by enabling SMS alerts throughout the transaction.
SABB will work towards increasing the volume of transactions made in Indian currency, and also add new currencies to the remittance product.
Last year, India recorded the highest remittance volume in the world at $79bn.