SBI joins forces with JP Morgan to accelerate cross-border payment

SBI joins forces with JP Morgan to accelerate cross-border payment

Indian multinational, public sector banking and financial services statutory body- State Bank of India has reportedly collaborated with American investment banking giant- JP Morgan to use the latter’s advanced blockchain technology to enable speedy overseas monetary transactions.

The agreement will help SBI reduce the cost of transactions for customers along with the time taken to facilitate the payment. The time undertaken to resolve overseas payment-related inquirers may be reduced to just a few hours from up to a fortnight. This will help cross-border payments become much faster with fewer steps.

According to Venkat Nageswar, Deputy Managing Director- International Banking Group, State Bank of India, the institution has undergone a considerable digital change in the last couple of years to add updated technologies with an aim to create real value to daily operations.

Mr. Nageswar added that SBI is the first Indian bank to go live on the network and tie up with JP Morgan to implement and explore as part of the network to enhance customer service.

In a statement by P D Singh, MD and Head- Corporates and FI, JP Morgan Chase Bank, India, the company is analyzing how upcoming technologies can be used to improve services offered to customers.

Notably, Liink- JP Morgan’s blockchain technology, has been developed for a peer-to-peer network, with many fintech companies, corporates, and institutions using it globally. The technology allows users to make safe, peer-to-peer data transfers with advanced speed and control. It also removes the risks involved in cross-border transactions.

In addition to the above, Liink will also allow engaging banks to pre-validate a customer’s account before the payment is made, and check message formatting for adherence to regulatory norms at the beneficiary location. This will eliminate transaction rejection or frauds and ensure optimum customer satisfaction.  

Source Credit: https://economictimes.indiatimes.com/industry/banking/finance/banking/state-bank-of-india-joins-jpmorgans-blockchain-based-payment-network/articleshow/81157341.cms