The financial services landscape has seen a major transformation as Krungsri (Bank of Ayudhya PCL) and IRPC (IRPC Public Company Limited) jointly announced the successful deployment of Krungsri Blockchain’s Interledger, marking Thailand’s first real-time international funds transfer for oil trading transactions between IRPC and its foreign business partners under the regulatory sandbox framework of the Bank of Thailand. The Krungsri Blockchain’s Interledger enables funds transfer across countries to be completed in a matter of seconds rather than one to three business days as usual.
Mr. Noriaki Goto, Krungsri President and Chief Executive Officer, Mr. Sukrit Surabotsopon, President of IRPC Public Company Limited, and responsible teams of both parties have celebrated their success in running a beta test of Krungsri Blockchain’s Interledger.
Also at the event, Mr. Goto said the success which brought about a significant change in Thailand’s financial landscape will accelerate the pace of global financial connectivity, with each real-time cross border funds transfer transaction done within a few seconds versus at least one to three business days under the previous system.
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“Krungsri is the first bank in Thailand offering the real-time cross border funds transfer service for the business sector through Krungsri Blockchain’s Interledger. The breakthrough marked a significant change in the financial landscape. It will be a catalyst to utilize financial innovations in delivering the cross border funds transfer service to other business partners. Krungsri can reap benefits from extensive global networks of Mitsubishi UFJ Financial Group (MUFG), Japan’s largest financial group and one of the world’s five largest financial institutions, with more than 2,000 branches in over 50 countries to ensure Krungsri’s excellent provision of the real-time international funds transfer service to serve corporate customers’ needs and increase their competitive advantage.” Mr. Noriaki Goto |
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Mr. Sukrit expressed his confidence that Krungsri’s real-time international funds transfer service will perfectly serve the strategy to drive IRPC’s business in tandem with the Thailand 4.0 development plan.
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“This breakthrough will lead to international business transformation. The faster process of international funds transfers has helped increase our competitive edge in the business arena, support the business growth potential and enhance the logistics and shipping management in a faster and more systematic manner. More importantly, the faster process in international money transfers has helped our customer, which is leading oil trader in Lao PDR; Bouasavanh Power Sole Co., Ltd, to better manage risk of foreign exchange volatility, while improving their cost management, speeding up delivery period, and increasing business advantages. Mr. Sukrit Surabotsopon |
Moreover Krungsri’s and IRPC’s senior executives have shared insights on opportunities and challenges arising from financial technology and its implementation on business operations. Attendees at the event included IRPC’s business partners from Southeast Asia and representatives from MUFG.
Utilizing the blockchain technology for international fund transfer transactions not only proves successful, but also marks a key milestone in adopting technologies and innovations to empower the banking business.
