Digital Ventures, the financial technology investment arm of Siam Commercial Bank (SCB) today unveiled its perspective on blockchain technology and has become the first Thai commercial bank to invest in a feasibility study aimed at building a stable, real-time cross-border money transfer platform.
Thana Thienachariya, Chairman of the Executive Committee at Digital Ventures said, “Many global banks and financial institutes are currently looking forward to blockchain technology as a promising innovation to enhance service level of financial transactions in various aspects, which benefits consumers in terms of faster services, greater security and better cost-savings. Several Thai financial regulatory authorities are also exploring the viability of this technology in embracing the global trend, as well as driving the country forward in response to Thai government’s Thailand 4.0 policy.”
Digital Ventures recently partnered with Ripple, a developer of blockchain technology, to invest in, conduct a feasibility study and test cross-border money transfer system utilising blockchain.
This was regarded as a major move in the Thai financial industry in adopting technology to build real-time cross-border money transfer platform, while accentuating SCB’s strategy to offer the best customer service quality.
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According to Suvicha Sudchai, Managing Director, Digital Products, Digital Ventures, “The concept of blockchain data storage is an open membership that allows every node in the network to access, which is contrary to the current practice where database of online transactions is kept in one place or one organization. Its consensus verification protocol allows the network to agree updates to database collectively, and these updates cannot be deleted.”
Benefits for consumers are faster, more convenient transactions.
Blockchain is currently adopted in various business applications including cross-border money transfer services. The fact that blockchain helps reduce processes in money transfer system benefits the business sector by reducing significant operating costs.
Benefits for consumers are faster, more convenient transactions, shortening turnaround time in cross-border money transfer from a few days to just a few minutes, as well as lower service fee and higher security.
Over 50 top global banks including Standard Chartered, Royal Bank of Canada, Westpac and National Australia Bank have so far implemented blockchain technology for their cross-border money transfer systems.