Brad Garlinghouse, the CEO of blockchain remittance firm Ripple, has opened up regarding the rumors revolving around SWIFT joining Ripple to improve remittance services in FinTech. In an interview with Bloomberg, he implicitly branded SWIFT’s methods as outdated wherein its services have not evolved to the standards of today’s market.
SWIFT [Society for Worldwide Interbank Financial Telecommunication] is a financial messaging network to provide payment settlement services to the banking sector. The opening lines by the Ripple chief were:
“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.”
Garlinghouse admitted that while 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.
Next, he mentioned SWIFT’s recent statement regarding blockchain, wherein the company stated that it does not see the respective technology as a solution for correspondent banking. Contradicting the point, Garlinghouse claimed that at least over a hundred customers of SWIFT disagree with this point of view.
Regarding the possibility of Ripple taking over SWIFT as an industry player, the businessman opined that it already has. Through executing its data on a day-to-day basis, Ripple is already leading the pack, leaving SWIFT behind, Garlinghouse explained. He added:
“In that we now signed well over 100 banks – some of the largest SWIFT enabled banks in the world are now using Ripple’s technology.”
He further cited an example of a remittance company which is using Ripple’s technology. The company reduced the price per transaction for their customers from $20/transaction to $2/transaction. The service also saw an increase of a massive 800% usage overnight. This, Garlinghouse explained, was the type of dynamic that SWIFT is unable to support. Therefore, Ripple is way ahead in the game right now.
He closed the interview by stating that his company wants to see banks succeed in the new world order and take advantage of these technologies. Lastly, Garlinghouse stated that Ripple is open to working with SWIFT.
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