The number of Vietnamese migrant workers in Japan reached a record high in the last five years, making Vietnam the second largest sender of migrants to the region. This growth is expected to increase as Japan’s borders become more open, following the government’s 2019 deregulation of a restrictive immigration law. As the overseas workforce continues to grow in Japan, people are looking for faster ways to send money home.
Understanding this need, Tien Phong Commercial Joint Stock Bank (TPBank), one of the leading digital transformation banks in the Vietnamese banking industry, partnered with RippleNet to successfully deploy blockchain technology for international money transfers between Japan and Vietnam. Instead of waiting several hours to complete a money transfer from Japan to Vietnam, transactions take minutes to settle. Through RippleNet, TPBank is able to provide its customers with a simple, transparent and fast way to send global payments in and out of Vietnam.
“By joining RippleNet, remittance transactions from abroad to TPBank will be faster, while ensuring safety and transparency, cash flows will still be legally transferred via foreign banks to Vietnam,” said TPBank CEO Nguyen Hung.
In 2019, TPBank connected to RippleNet and is the first and the only bank in Vietnam—creating an opening for the network of over 300 financial institutions to gain access into this market. Today, TPBank processes billions Japanese Yen, equivalent to dozens of millions USD per month from Japan to Vietnam via RippleNet. Remittances are real-time transfers and processed 24/7, a revolutionary system compared to traditional banking services.
Being part of RippleNet is helping TPBank open new remittance corridors and expand its services to more countries popular with Vietnamese migrant workers. In 2019, the company connected to its first RippleNet partner, SBI Remit to launch the first money transfer service between Japan and Vietnam leveraging blockchain technology. By harnessing this power through RippleNet, TPBank is making cross-border payments faster, cheaper and more transparent.
TP Bank began its partnership with SBI Ripple Asia by focusing on individuals working outside of Vietnam who need to send money home to their families on a regular basis. TP Bank now plans to expand its newly-enhanced remittance service to both individuals and corporates, especially small and medium-sized enterprises (SMEs).
“This takes high priority for SME customers of TPBank because taking advantage of RippleNet with real-time transfers and 24/7 transaction processing, SME customers will save time, minimize costs, reduce risk management and release the necessary capital that can be used to further develop their business,” Mr. Hung said.
As their network grows through RippleNet, TPBank will be able to make the entire cross-border payment chain a seamless experience for both partners and customers.
If you are interested in learning how RippleNet can help better serve your customers, contact us. Companies located in Japan and Korea can contact SBI Ripple Asia to learn more about how to save time, lower costs and reduce risk in cross border transactions.