@brakonier – Since the beginning of the use of technology Ripple, the Bank carried out international payments in a total amount of 900 million dollars at the speed of light.
Starting in may 2017, the Swedish banking group SEB used the blockchain technology to convert hundreds of international transactions totaling $ 900 million, by implementing one of the first real cases of application of new technologies in a corporate environment.
Paula da Silva, head of transaction services of the Bank, says that the standard period of the international banking payment between USA and Sweden is one to two days, but using the technology of Ripple it only takes two seconds.
Only a dollar
Currently, all transactions are between accounts of customers of SEB Bank, and uses only one currency – US dollar.
Da Silva explained that the Bank does not use XRP, a token offered by Ripple as a tool for converting currencies, as the Bank saw no need to use other currencies other than the dollar:
“The US dollar the most common currency for transactions between Sweden and the United States, you usually do not send other currencies, therefore we use only the dollar.”
Why not SWIFT?
In December 2015 the company SWIFT, a global system for interbank payments, and announced the initiative of global payment innovations (GPI), which in January of 2016 was joined by 45 banks, including SEB.
But until now, the GPI technology is still not running at SEB Bank.
Eleven months later, after joining the initiative SWFIT, SEB Bank has also joined the network RippleNet platform, which brings together more than 100 financial institutions around the world. And six months later the Bank started actual use of the platform Ripple in its activities.
Da Silva says that the decision of the Ripple is already a working platform, which can be very easy and fast to implement in the Bank.
Cost of implementation was negligible, she said. This is the superiority of already existing solutions based on cloud-based distributed registries, which are widely available and easily configured for programming and testing.
Although Da Silva notes that SWIFT has the advantage of long-existing system for banks, the introduction of this platform is quite tricky.
According to her, the difference between technologies that offer SWIFT and Ripple, not as significant as the effort required for their introduction into the banking system. And here Ripple on top.
New method of working, which offers Ripple is easy and gives you immediate value for customers, said Da Silva.
SEB Bank does not use the solution to the Ripple as a “mass product,” says Da Silva.
“About 20 corporations have used that decision, but they are among our biggest clients, working in more than 100 countries.”
Da Silva explains that the SEB Bank does not apply this decision for the average commercial payments. Instead, the decision of the Ripple is used for large transactions between two branches or between branch and head office, when required immediate payment.
Also Ripple is often used to Finance mergers and acquisitions.
“If our client buys a company and require immediate payment, we use this solution for such clients,” says Da Silva.
Faith in the blockchain
While many bankers are leery of blockchain technology, Da Silva, by contrast, believes that the blockchain is one of the most promising new technologies that will change the banking industry.
“It will completely change the financial world. It gives us something we haven’t seen before, such as complete transparency and instantaneous movement of value.”
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