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Major Indian bank Federal Bank is partnering with distributed ledger fintech Ripple to enable blockchain-powered remittances, according to a letter issued by the bank.
Access to Ripple’s technology can speed up remittances sent through Federal Bank’s platform, and enhance the quality of its service in line with consumer desires. Speed is among the most influential factors when consumers select providers, and enabling quick transactions could improve competitive positioning as a result.The partnership can bring even more volume to Federal Bank, which already controls 15% of the remittance market in India. India has consistently been the top remittance recipient in the world for several years, and Federal Bank already owns a sizeable chunk of the market.
Partnering to integrate into an in-demand feature like speed can allow remittance firms like Federal Bank to further boost their competitive standing in a blossoming market: Business Insider Intelligence expects digital remittances to grow from $225 billion in 2018 to $387 billion in 2023 as digital services increasingly become the preferred remittance channel.
Globally, other remittance firms have leveraged Ripple’s technology as well: Ripple’s list of partners ranges from legacy remittance firm MoneyGram to smaller organizations like SendFriend, UAE Exchange, and Unimoni.