During the course of the last five years the number of migrant workers coming from Vietnam to Japan reached a record peak, making the Vietnamese diaspora the second biggest. After the Japanese government’s deregulation of restrictive immigration law in 2019, it is likely that the country’s borders will be even more open to immigrants. Of course, with more immigrants, more people need better and faster ways to send money home.
One of the leading digital transformation banks in Vietnam – Tien Phong Commercial Joint Stock Bank (TPBank) – is well aware of this user demand and has announced its collaboration with Ripple to deploy blockchain technology for international money transfers between the two countries.
Until now a payment from Japan to Vietnam needed several hours to be completed, but with this new technology, the transaction can be settled in minutes. With the help of RippleNet, TPBank’s customers will be able to send payments to and from Vietnam in a simple, fast, and transparent manner.
TPBank CEO, Nguyen Hung believes that “by joining RippleNet, remittance transactions from abroad to TPBank will be faster, while ensuring safety and transparency, cash flows will still be legally transferred via foreign banks to Vietnam”.
TPBank is the first and only bank in Vietnam, connected to RippleNet. Starting from 2019, TPBank allows Vietnamese people to use more than 300 financial institutions, part of the network. Per month, TPBank processes billions of Japanese Yen, or dozens of millions USD from Japan coming from RippleNet. In comparison to the traditional banking services that we know, such remittance services with real-time transfers that are processed 24/7 are a huge step forward.
Of course, through RippleNet, TPBank will be able to open new corridors for remittance services and grow its operations to more countries where Vietnamese workers can be found. SBI Remit was the first RippleNet partner in 2019, to start the premier money transfer service between Vietnam and Japan that uses blockchain technology. Through using exactly this technology, TPBank will deliver cheaper, faster, and more transparent cross-border payments.
The first leg of the collaboration with SBI Ripple Asia was aimed at people who work outside of Vietnam and want to regularly send money home. The next step would be to include remittance service to small and medium-sized enterprises (SMEs).
Hung commented on the bank’s priorities:
“This takes high priority for SME customers of TPBank because taking advantage of RippleNet with real-time transfers and 24/7 transaction processing, SME customers will save time, minimize costs, reduce risk management and release the necessary capital that can be used to further develop their business.”
By growing with RippleNet, TPBank is planning to form a full cross-border payment chain that provides a smooth experience for customers and partners.