Ripple discusses how it wants to scale its business further in the region in 2019
February 06, 2019 | Chris Kapfer
- Globally, it took Ripple two years to acquire the first 100 customers but it took only one year to acquire the next 100.
- Expanding multi hub model with banks as regional clearing partners to reach further scale
- Banks in Asia believe both global platforms, Ripple and Swift gpi have their strength and weaknesses
Ripple announced recently that nearly 100 financial institutions joined RippleNet in 2018 bringing it to a total of more than 200 customers. Among the latest batch of 13 new financial institutions two banks joined, Euro EximBank and Ali Bank in Kuwait.
This is smaller compared to the number of banks SWIFT gpi has currently, which has gained since its launch in 2017 the support of over 300 financial institutions, including the world’s 60 largest banks.
With the latest remittance corridors opened from the US to Mexico and to the Philippines in January 2019, Ripple is now present in all large remittance corridors, operating in over 40 countries across six continents, and it aggressively is closing the gap.
“Every one of those 200 financial institutions, of which 50% are from Asia and the Middle East, are production ready and are in the process of going live. It took us two years to acquire the first 100 customers but it took only one year to acquire the next 100. Existing customers are using us more by leveraging our multiple corridors and the network effect is really starting to take off, said Navin Gupta, managing director for Ripple, South Asia and MENA.
When Ripple Net launched in 2016 there was scepticism from banks and regulators. Incumbant banks hesitated. Their own legacy bank infrastructure was too complicated and driving the cost of onboarding this technology. Most of Ripple’s early customers where neo banks or non-bank FIs.
But the ability to send money globally in real time, a high processing transparency and pre-validation of accounts as well as regulatory o...
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