Kuwait Finance House Integrates RippleNet To Enable Instant Cross-Border Payments
Kuwait Finance House is the latest bank in a growing list of financial institutions that have moved to leverage Ripple Network to enable fast cross-border payments. It becomes the first Kuwaiti bank to integrate the Ripple blockchain technology that is becoming increasingly popular in the sector.
The partnership is the first of its kind in the Middle Eastern nation, underscoring how financial institutions around the world are adopting blockchain technology to enhance customer experience and service delivery.
Customers will now be able to make rapid international transfers at reduced transaction fees, compared to other means of sending payments across borders. In addition, it should help the sharia-compliant financial institution offer competitive and cheaper cross-border payments not only in the Middle East but all over the world.
“This is great news for the Kuwait Finance House, as it continues to add solid foundations to the major banking partnerships. The fact that KFH is the first bank in Kuwait to operate in this way will pave the way for more customers to access services through the RIBL network,” said a Kuwait Finance House Spokesperson.
Kuwait Finance House is a global leader in Islamic banking. The bank operates in seven regions and has 485 branches and 1,000 ATMs. Its adoption of the blockchain solution underscores the fact that it could play an essential role amidst Sharia Laws that at times pose significant challenges. The bank has already confirmed that the technology has the potential to improve its Sharia-compliant products overall.
The bank is not the first one in the region to integrate RippleNet for cross-border payments. The UAE stock exchange and the Central Bank of Saudi Arabia are some of the high profile institutions that have joined RippleNet in the recent past. BankDhofar became the first Oman bank to adopt RippleNet as it moved to offer a more transparent and friction-less cross-border money transfer.
RippleNet is becoming a blockchain solution for pioneering banks looking to gain an edge when it comes to cross-border payments. In addition to a fast cross-border solution, the blockchain solution also offers instant transaction settlement as well as bi-directional messaging. Of all the blockchain projects, Ripple boasts of the most partnerships with mainstream financial institutions.
In a bid to keep up with growing demand Ripple has carried out significant improvements in the recent past to improve reliability, scalability as well as the security of the XRP Ledger.