[ad_1]
- A new report from the Boston Consulting Group describes that payment service providers like Ripple outperform banks in many industries.
- Banks need to develop new technologies to keep up with the latest advances.
Cryptocurrencies have become an integral part of today’s financial market and are in direct competition with traditional payment providers such as banks or world-renowned payment networks such as SWIFT or Mastercard. According to a new report from the Boston Consulting Group (BCG), banks need to develop strongly, otherwise new young talent in the industry like Ripple will outpace them.
Ripple and other payment service providers better than banks in many areas
On more than 34 pages, the report examines the advantages and disadvantages of traditional and new payment systems and also delves into new technologies. According to BCG, blockchain technology is particularly forward-looking, as it performs much better in many areas than older banking technologies.
Companies like Ripple outperform banks in speed, pricing, API integration, and overall customer experience. Therefore BCG appeals to banks and other large financial institutions to develop new solutions, because otherwise young projects like Ripple or Earthport will steal their customers:
Card networks, fintechs and infrastructure providers such as Ripple and Earthport have entered the cross-border payments space in recent years. These challengers often outperform banks in speed, pricing, API integration, and overall customer experience. To remain competitive, banks will have to change their approach.
For a long time, SWIFT and Co. were regarded as the absolute benchmark in the industry and were unrivaled. This can be seen from the fact that more than 11,000 financial institutions around the world are connected to the SWIFT API and that their existing services continue to function flawlessly in their current state. However, BCG says new blockchain-based payment solutions offer significant cost and speed benefits:
Many banks have introduced SWIFT gpi to improve the speed and tracking of international payments. But with challengers providing cost-effective solutions such as “demand payment” facilitating remittance and reconciliation, banks must continue to update their offerings.
To keep up with the current trend, banks would need to reduce their cost base, increase operational efficiency and fully modernize their core business processes. In this context, it can be important to explore new ways to optimize your business processes with Fintech partners, such as Ripple.
The digitization of all processes, from sending the transaction to receiving, should also be radically revised to offer the end customer the best possible experience. It is also important to implement a simple and reliable KYC process:
Additionally, as part of the correspondent banking realignment, wholesale banks should consider rationalizing the number of correspondent banks in high-risk jurisdictions in order to minimize compliance risks and costs. They should also consider applying global standards to know your customer (KYC), sanction screening, and transaction monitoring to identify money laundering and terrorist financing attempts.
Ripple and the banking sector
Ripple is already working successfully with a number of banks such as Santander Bank. Europe’s largest bank uses Ripple’s technology in its One Pay FX App, which can process cross-border payments in real time. Ana Botín, CEO of Santander Bank, says 50% of the total transaction volume is now processed through One Pay FX.
Furthermore, Ripple has already met with several representatives of various central banks in the past, but to date no sensitive information about the cooperation or similar has been disclosed at these meetings.
[ad_2]Source link
