Private sector Axis Bank today became the third lender in the country to announce usage of blockchain solutions for its operations, after its peers ICICI Bank and Yes Bank.
The Shikha Sharma-led bank, the third largest private sector lender, will be using the upcoming technology for cross-border remittances, it said in a statement.
“We are committed to using innovation in technology to make banking simple and convenient for our customers,” deputy managing director V Srinivasan said.
He said remittances have been a key strategic area for the bank and the blockchain technology will enable real-time affordable money transfers. Blockchain solutions is a distributed database that maintains a continuously growing list of ordered records called blocks. It is said to reduce turnaround times, is transparent and also ensures zero errors.
Axis Bank has tied up with fintech firm Ripple to offer the solution. As against the current system which takes up to five days for transfer money, Blockchain can do so instantaneously, it said.
“Given its status as the fastest-growing major economy in the world and the top market for remittances, India is a very important market that is ripe for payments innovation,” Brad Garlinghouse, the chief executive of Ripple, said.
Axis Bank’s larger peer ICICI Bank was the first to announce block chain solutions in for international trade finance and remittances last October. This was followed up by mid-sized rival Yes Bank last week under which it will be using the technology for vendor financing.