Ineffective management of global liquidity has long been an obstacle to cross-border payments in all regions of the world. However, this problem is particularly noticeable in the region of South-East Asia, which is largely not served by correspondence. In the result, cross-border payments in these countries are inefficient and suffer from high fees.

That is why Siam Commercial Bank becomes the first financial institution in RippleNet that can use multi-hop, which allows you to make payments on behalf of other financial institutions in the network. This eliminates the need for direct communication between financial institutions for payment. Using multi-hop, Siam Commercial Bank will be able to receive and send payment without a two-way relationship between sender and receiver.

The lack of standard integration in the region of South-East Asia for regional cross-border payments today, the cost to the institutions is very expensive. Neighboring countries, relying on the correspondent banking system, must first convert currency into US dollars and then to settle several correspondent banks, before finally to exchange them for the currency used in the establishment of the secondary. This cumbersome process requires numerous charges, including two sets of foreign currency. As a result, almost no support for small payments, which make small and medium enterprises and senders of funds.

With multi-hop financial institutions can connect directly to Siam Commercial Bank, which can calculate the translation in the required currency and transfer it across the region without changing money in multiple currencies and paying large commissions. For small financial institutions that have not previously had the opportunity to make payments in the South East Asian region, multi-hop will be able to facilitate access to those countries and to simplify payments regardless of the payment amount or pool of liquidity to their financial institutions.

The advantages of multi-hop goes far beyond the financial institutions. Now customers RippleNet institutions, including recipients and small and medium-sized enterprises will find that their payments will be settled faster, cheaper and more transparent. According to estimates of the market for small and medium-sized enterprises in developing countries work 60 percent of employed, but the number of countries in South-East Asian region reached 70 percent.

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