In a recent interview with Bloomberg, Brad Garlinghouse, the CEO of blockchain remittance firm Ripple has aired rumors saying that SWIFT joining Ripple in order to streamline remittance services in FinTech. He criticized SWIFT’s methods, a sophisticated one as its services have not been in line with the specific standards as required in today’s market.
Society for Worldwide Interbank Financial Telecommunication (SWIFT) is one of the financial messaging networks that offers payment settlement services to the banking sector.
Further speaking to the subject matter, the Chief of Ripple said “SWIFT is owned by the banks and we’re trying to help the banks. We feel like blockchain technologies are a massive step forward in terms of how correspondent banking has historically worked. The technologies that banks use today – the SWIFT developed decades ago, it hasn’t really evolved.”
Further, he elaborated that “Though Ripple has had several partnership opportunities, the company has not been able to bring them to fruition. However, it will continue to focus on solving customer problems as of now.”
With this, he focused more on the SWIFT’s recent statement pertaining to blockchain where the company stated that “it does not see the respective technology as a solution for correspondent banking.” In responding to it Garlinghouse is believed to have criticized and said that “at least over a hundred customers of SWIFT disagree with this point of view.”
Amid the expectation of Ripple’s taking over SWIFT as an industry player, it is supposedly executing its data on a day-to-day basis as part of its regular operation as Ripple is already leading the pack by leaving SWIFT behind as commented by Garlinghouse.
Besides this, Garlinghouse elaborated more about the perspective saying that “we now signed well over 100 banks – some of the largest SWIFT enabled banks in the world are now using Ripple’s technology.”
While elaborating the entire perspective, Garlinghouse explained with the example of a remittance company which is using Ripple’s technology at present. With the innovative tech in place, the company has been in a position to slash its price per transaction for their customers from $20/transaction to $2/transaction. With this, the service has observed an incremental massive 800% usage overnight. “If this was the type of dynamic that SWIFT is unable to support, the Ripple will be needed to streamline the entire concept” as explained by Garlinghouse.
Eventually, he concluded the interview by saying that his company would like to see financial institutions achieving success across the entire gamut of activities that they offer by utilizing and adapting the new age tech. Last but not the least, he emphasizes that “Ripple is open to working with SWIFT.”