Federal Bank unveils new remittance solutions

Shyam Srinivasan flanked with other senior officials at the Press conference on Thursday in Dubai. - Supplied photo

India's Federal Bank, which accounts for a significant share of the estimated over $70 billion annual remittances to India, announced on Thursday the global launch of two cutting-edge technology remittance variants.
The first one is an upgraded version of the initial blockchain remittance platform which was launched in December 2017, and second is a platform for non-resident Indians to send money through exchange houses and banks using an easy to remember Virtual Payment Address (VPA) of the beneficiary, Shyam Srinivasan, MD & CEO, Federal Bank said.
The upgraded blockchain technology uses the R3 Corda platform developed in partnership with an Indian fintech company Digiledge. "This new easy-to-plug-in platform enables exchange houses and banks in the Middle East to connect their existing solutions to make seamless, real-time transactions," said Srinivasan.
Addressing a Press conference, the bank CEO said the platform offers high level of security due to the distributed architecture and use of advanced cryptographic algorithms. Lulu Exchange, one of the leading financial services company with more than 180 branches worldwide, has gone live with this upgraded cross border remittance platform.
"We are delighted to partner with Federal Bank to roll out the enhanced blockchain technology and VPA system. At LuLu Exchange, we have always embraced innovative technology that gives rise to new products and services that enhances customer experience. We are sure these new integrations will ease process and bring further operational efficiency," said Adeeb Ahamed, managing director LuLu Exchange.
The private sector bank has also entered into a partnership with Ripple Inc, a blockchain supported global remittance company, for cross border remittance through its network. A pioneer in using advanced technology, the Indian lender has also launched a new app targeting the NRI community to receive OTPs and alerts for transactions in their accounts with Federal Bank instantly and securely.
"The app solves the problem of delayed delivery of OTPs and alerts and it is available in both Android and iOS platforms," said Srinivasan.
He estimated that remittances to India in 2018 would far surpass $70 billion. According to the World Bank forecast, India would retain its position as the world's top recipient of remittances in 2018with its diaspora sending a whopping $80 billion back home. He said the Indian banking sector witnessed another year of robust growth with a credit growth of 14 per cent and deposit growth of10 per cent.
He also did not rule out the bank's sustained 'brick and mortar model' growth in spite of the exponential expansion of digital banking. "We will be adding more branches as we grow but will opt for smaller-size units."
- issacjohn@khaleejtimes.com