Private sector bank, Axis Bank has started the year on a high by following the footsteps of its peers Yes Bank and ICICI Bank, and becoming the third bank in India to begin using block chain solutions for its operations.
The third largest private sector lender in the country will be taking help of fintech firm Ripple’s network for cross-border transactions- an area that the bank is aggressively pursuing nowadays keeping in mind the future growth.
A statement given out by V Srinivasan, deputy managing director, Axis Banks reads, “We are committed to using innovation in technology to make banking simple and convenient for our customers.”
Srinivasan strongly believes that remittances, which have over the years become a key strategic area for Axis bank will benefit significantly by the usage of blockchain technology as it will enable real-time affordable money transfers.
While the current system takes up to five days to transfer money, blockchain can achieve the same instantaneously.
For the unversed, the blockchain solutions is a distributed database that meticulously maintains a continuously growing list of ordered records called as the blocks. It is said to be transparent, significantly reduce turnaround times, and also ensures zero errors in the process.
Axis Banks’ announcement comes just a few months after it had partnered with Kotak Mahindra Bank to test the blockchain technology for new client-facing services. In October last year, the rumour mills were hot with the news that Axis Banks was planning to launch products using the tech but the bank never gave an official statement about the launch dates.
Axis Bank’s interest in blockchain first came to light in the middle of last year when it had launched a new FinTech accelerator partly aimed at exploring new services for blockchain.
Given the fact that India has acquired the status of being the fastest-growing major economy in the whole wide world and is also a top player in remittances, hence the country needs to keep pace with payments innovations happening in the world.
It was the ICICI Bank that had first announced about using the blockchain solutions for international trade finance and remittances in October last year. This was followed by Yes Bank announcing the usage of the technology for vendor financing last week.