Blockchain platform, it allows inter-bank payments between banks in

Blockchain technology
lets multiple parties to have simultaneous access to a constantly updated
digital ledger that can’t be altered. some of the areas that will see effects
with the utilization of blockchain would be in Clearing and settlement,
payments, Trade finance and so on. in the banking sector in Singapore, one of
the development using blockchain would be the Cross-Border Payments. By
adopting the blockchain technology it brings regarding safer, faster, cheaper and
more transparent payments. OCBC Bank has become
the first bank in southeast asia to use blockchain technology in its local and
cross-border payment funds transfer services. OCBC Bank has adopted a
blockchain technology permitting local and cross-border inter-bank fund
transfers. A payment blockchain solution collectively designed by OCBC Bank and
a local banking payment solutions company, BCS information Systems (BCSIS).
With the BCSIS blockchain platform, it allows inter-bank payments between banks
in Singapore and overseas while not requiring a payment intermediary. As such,
generally a cross-border funds transfer between OCBC Bank Singapore and OCBC
Malaysia takes up to one day currently it may be completed in less than five
minutes. some of the advantages for OCBC Bank for adopting the payment
blockchain solution would be safer, quicker turnaround time, more transparency
and lower cost With the BCSIS
blockchain platform the removal of the traditional intermediary transaction
platform, there’s a visibility of transaction flows between senders and
recipients and therefore the dealing is far more easily tracked

While SCB
adopted cross-border payment services for the corporates in both Singapore and
India by using the enterprise Blockchain platform from the FinTech start-up,
Ripple. Ripple’s distributed ledger technology (DLT) solution. SCB and Axis
Bank (India) uses the RippleNet as a passage through the “$15 billion trade
corridor” between Singapore and India. A typical cross-border funds transfer
would take up to two business day, whereas with Ripple’s enterprise blockchain
solution, making a cross-border payment which is able to be completed in less
than ten seconds with full transparency of fees and FX. When fully
commercialised, businesses are going to be able to have access and make
cross-border payments in real time, at any time of the day while not being
restricted by cut-off times. additionally, fee & FX transparency in
conjunction with real-time status updates can give businesses greater control
and certainty on their payments, costs and also the use of funds.Ripple’s
blockchain platform reduces the amount of your time and money related to
sending payments across the border which provides real-time,
business-to-business (B2B) international payments. Additionally, with the
Ripple-powered corporate payment service, it permits SCB to offer their
customers an enhanced payment experience, and enabling their end-customers to
manage their cash flow, costs, and float better There are
several large international corporates with regional treasury hubs in
Singapore, these corporates span industries together with fast-moving consumer
goods (FMCG) and retail. Typically, these corporates manufacture their product
in India before shipping them to Singapore for worldwide distribution.
Singapore-India trade corridor is worth $15 billion, with the Ripple-enabled
cross-border payment it helps to unlock the corridor on both sides for SCB and
Axis Bank.

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With the increase in uses of blockchain
technology in banks, it might probably disrupt the financial industry. Thus,
regulatory issues and impacts might arise. Regulators can ought to raise the
standards in cybersecurity to make sure the safety of data by reviewing the
technology risk management guidelines. Whereas the impacts would be fraud
reduction, eliminate intermediaries in the payment processing system, keeping
up with Know Your Customer (KYC) and having smart contracts. With DLTs
organizations that are using a similar DLTs would be able to access and share
structured information across a distributed network using advanced
cryptography, as such different organization do not have to start a KYC process
again which reduces the administrative costs. As for good contracts, with the
use of blockchain, codes will be programmed to form contracts between financial
organization once a certain set of criteria has been achieved. two or more
parties then will enter their keys to decrypt the contracts.

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