The number of Vietnamese migrant workers in Japan reached a record high in the past five years, making Vietnam the second largest sender of migrants in the region. That growth is expected to accelerate as Japan’s borders become more open following the government’s deregulation of a restrictive immigration law in 2019. As the overseas workforce in Japan continues to grow, people are looking for faster ways to send money home.
Tien Phong Commercial Joint Stock Bank (TPBank), one of the leading digital transformation banks in the Vietnamese banking industry, has teamed up with RippleNet to successfully use blockchain technology for international money transfers between Japan and Vietnam. Instead of waiting several hours for a money transfer from Japan to Vietnam, transactions take just a few minutes. Via RippleNet, TPBank can offer its customers an easy, transparent and fast way to send global payments inside and outside of Vietnam.
“By joining RippleNet, transfer transactions from overseas to TPBank will be faster, while ensuring security and transparency. Cash flow will continue to be legally transferred to Vietnam via foreign banks,” said Nguyen Hung, CEO of TPBank.
In 2019, TPBank connected to RippleNet and is the first and only bank in Vietnam. This created an opening for the network of over 300 financial institutions to gain access to this market. Today TPBank processes billions of Japanese yen, which is the equivalent of tens of millions of USD per month from Japan to Vietnam via RippleNet. Transfers are transfers in real time and are processed around the clock, a revolutionary system compared to conventional banking services.
Participating in RippleNet will help TPBank open new remittance corridors and expand their services to more countries popular with Vietnamese migrant workers. In 2019, the company and its first RippleNet partner, SBI Remit, launched the first money transfer service between Japan and Vietnam using blockchain technology. By using this service via RippleNet, TPBank makes cross-border payments faster, cheaper and more transparent.
TP Bank began its partnership with SBI Ripple Asia by focusing on people outside of Vietnam who have to send money home to their families on a regular basis. TP Bank is now planning to expand its newly expanded transfer service to both private individuals and companies, especially small and medium-sized enterprises (SMEs).
“This is a high priority for TPBank’s SME customers, as SME customers save time, minimize costs, reduce risk management and free up the required capital that can be used for further use by using RippleNet with real-time transfers and transaction processing around the clock can develop their business, ”said Mr. Hung.
As their network grows via RippleNet, TPBank can make the entire cross-border payment chain a seamless experience for partners and customers.
If you’d like to learn how RippleNet can better serve your customers, contact us. Companies based in Japan and Korea can contact SBI Ripple Asia to learn more about how to save time, reduce costs and reduce the risk of cross-border transactions.