Spanish banking giant Santander says it plans to expand the use of technology xCurrent from Ripple.
Earlier this month, Santander announced the launch of the app OnePay FX, the first international remittance system based on the blockchain, namely on the basis of XCurrent from Ripple. During a short interview for the Financial Times, the Executive Director of the Anna Botin stated that the tasks the company set itself by entering into a partnership with Ripple is not only about customer service Santander.
We present to your attention excerpts from the interview:
Financial Times: Now this service is available only to customers of Santander in one of the countries you mentioned, but you plan to create on its basis something more.
Anna Botin: that’s right… We’re working on it, unfortunately it is too early to speak about any time frame, but we would like to create a separate app for money transfers, which would be a much broader market. The potential of this application is huge.
This step will allow Santander to become a direct rival such platforms to transfer money, TransferWise.
Botin also said the possibility xCurrent from Ripple, saying that this technology is powerful enough to take care of handling the entire system of international Bank transfers.
Financial Times: One of the drawbacks of the block chain, which now exist is that they are limited in power. As this is a serious problem for you?
Anna Botin: Considering our volumes, this is not a limitation. In fact, this new development covers 50% of all transactions committed in the Santander Group annually, and it works really well because we were involved in testing project for about 2 years. And it works. It is safe. In addition, this technology fully complies with the requirements of local regulators.
Interview shows how to actually change the banking business and the fact that Santander is ready for this change, although they can be devastating for the industry. According to a new report from Citigroup, only European banks could lose more than a third of their income due to new technologies based on the blockchain by 2025.