Banks of Canada, Australia and Israel are creating an alliance and using the Ripple network for cross-border payments.
National Australia Bank (NAB) announced an agreement with two leading global financial institutions — Israel’s Bank Leumi and the Canadian Imperial Bank of Commerce (CIBC) — to create an international alliance of banking innovation and use the Ripple payment network to make cross-border payments.
The alliance will enable the exchange of innovation strategies and information with partners. The members will be able to jointly develop products and services to better serve their customers.
NAB Labs Executive CEO Jonathan Davey said that the Ripple network has opened up a wide range of opportunities for NAB to access international innovation initiatives. NAB Labs is an innovation hub at the National Australia Bank focused on rapid experimentation and commercialization.
NAB has already been working with CIBC using the Ripple network for international transfers as a proof of concept. Davey believes that Ripple will be able to provide real-time international payments and improve the security and efficiency of payment systems.
NAB believes that the alliance with the innovative Bank Leumi will provide access to Israel’s advanced technology and world-leading startup ecosystem, particularly the ability to effectively manage cybersecurity risks.
The international banking innovation alliance, through the Ripple network, intends to improve customer service. The work to be done is in the following areas:
- increasing the transaction speed;
- reducing costs;
- improving network security.
Despite the Securities and Exchange Commission (SEC) lawsuit against Ripple Labs, the payment network significantly expands its international presence. According to a report from RippleNet CEO Asheesh Birla, last year was successful for the firm. The company processed over $10 billion in transactions, and its On-Demand Liquidity (ODL) international payments system is already operating in 22 markets and will soon be available worldwide, Birla says.