BankTech

Fidor becomes the First to Adopt Inter, Intra Bank Payments via Ripple’s Real Time Global Settlement Protocol

Back in September last year, Patrick Griffin, EVP of Business Development at Ripple Labs gave Lets Talk Payments, some insights into Ripple. On 5th May 2014, the company introduced Fidor Bank AG as the first to integrate its real time global settlement protocol, Ripple. 

"Ripple is changing the rules of the game for financial institutions, enabling real-time settlement in any currency to strengthen customer relationships and positively impact the bottom line," Ripple Labs CEO, Chris Larsen, stated in a press release. "As an innovator and leader in the banking industry, Fidor is using Ripple to define a new standard for what a bank can be and how it can serve its customers," he added. Fidor bank has previously worked with virtual currency related establishments including. Bitcoin Deutschland GmbH as well as Payward Ltd. (Kraken Exchange)

  • Fidor will utilize the company’s Ripple implementation to power -bank payments between branches as well as inter-bank payments with other institutions.
  • Ripple defines itself as an open, decentralized payments protocol that allows the transfer of anything of value via a global value web.
  • The Ripple payment protocol allows for free and nearly instant payments with no chargebacks in any currency or unit of value.
  • Businesses of any size can easily build payment solutions, such as prepaid, remittance apps, or money transfer and accelerate the movement of money on Ripple.
  • Ripple touts itself as enabling the world to move value in the same manner as information is moved around worldwide.
  • With the integration of Ripple, Fidor users can instantly transfer any amount of money in any currency, at competitive rates via existing Fidor money transfer products.
  • Users engage with Fidor in a similar manner as before and they are not required to hold separate Ripple accounts.
  • Fidor will also use Ripple for intra-bank payments between its German bank and its banks in other countries to lower costs associated with settlement and foreign exchange risk and increase speed for users and the bank.
  • Fidor can effortlessly transact with those institutions without fees, correspondent banks, additional integration work or time delays as more and more financial institutions begin to take up Ripple.
  • This is the first bank to adopt an open payment protocol and one of a growing number of accredited financial entities deploying Ripple for real-time settlement, according to the company.

"Ripple enables us to securely and instantly send money anywhere in the world at no additional cost and through the same customer facing products and relationships we offer today," Fidor Bank CEO, Matthias Kröner, stated in the same release. "With Ripple, we can deliver a superior banking experience at a fraction of the time and cost traditionally expected of a financial institution.”

Chiraag Patel

Chiraag Patel is a Senior Reporting Analyst and the Editor of Bitcoin and Virtual Currency channels at Lets Talk Payments. He is an engineer with deep interest in MMORPG, Virtual Banking, Game Currency and Virtual Cash. Chiraag enjoys Reading& Blogging with focus on New Innovation, Technology & Startups in the Payments Space.

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