In a recent interview with Bloomberg, Singapore, Ripple CEO, Brad Garlinghouse stated that most large banks which have been on SWIFT network are signing on with Ripple.
This is only an indication that Ripple is taking over the business from the Society For World bank Interbank Financial Telecommunication provider, SWIFT.
When he was asked a question, “is there any possibility that Ripple could take over SWIFT one day? he said,
“I think what we are doing and executing day by day is already taking over SWIFT, the technologies that banks use today that Swift developed decades ago really hasn’t evolved or kept up with the market,”
Mr. Garlinghouse seems to be so confident that Ripple will finally take over the business from SWIFT, these are his areas of emphasis to support his statement.
SWIFT Software, Used by Banks are Outdated
SWIFT software used by the banks were developed decades ago, therefore outdated and can’t meet up with the current market demand. The banks have also observed that meeting up with the market demand in the technological transformation to render better services to customers, would be difficult. So a lot of them as mentioned by Ripple CEO, have decided to sort for modern technology which can only be provided by Ripple Inc.
Ripple’s blockchain technology eliminates the clog in payment processing because it uses a decentralized system which enables transfer of money without passing through an account in the banks. This enables payments to be processed faster and cheaper, with ease.
Since all the evolvement in technology has been a trend, SWIFT has not taken any step to improve on its software. From every indication, SWIFT has not seen blockchain technology as a threat to its business.
Recently, they said that “they didn’t see blockchain as a solution to correspondent banking. We’ve got well over 100 of their customers saying they disagree.”
Large Banks Supported by SWIFT Software are Signing on With RippleNet.
Ripple CEO stated that about 100 banks and payment processing networks which have been using SWIFT software are now on RippleNet network. Some of these banks include Japan’s Mitsubishi UFJ financial group and Standard Chartered Bank. Other banks from Kuwait, Saudi Arabia, and the United States are also included.
The domination of Ripple Inc in the financial industry really poses a threat to SWIFT but we will watch and see how SWIFT would react to this.