Kerala based Federal Bank on Friday announced a partnership with Abu Dhabi-based LuLu Exchange to leverage blockchain technology for cross-border remittances.
Kerala based Federal Bank on Friday announced a partnership with Abu Dhabi-based LuLu Exchange to leverage blockchain technology for cross-border remittances. The two financial companies have launched and successfully tested the service using blockchain technology, which is fast revolutionising the financial and commercial world, bank sources said. The companies worked with Digiledge, a Bengaluru based fintech start-up on this innovation. Federal Bank facilitates a major portion of the inward remittances into the country in association with multiple exchange houses abroad. “Blockchain technology is expected to transform banking in a significant way, and we do believe that our customers and partners will benefit from this innovation in remittances. Federal Bank’s motto is ‘Digital at the fore, human at the core’ and the launch of block chain technology is one more step in reinforcing this theme,” said Shalini Warrier, chief operating officer, Federal Bank.
The new technology, helps organisations share data in a more trusted, distributed and extensively automated way. The ‘Distributed Ledger Platform’, as it is popularly known among its practitioners, is touted to bring the commercial world closer by selective and secure sharing of data between distinctly different businesses, thereby encouraging seamless transactions, sources added. The use of blockchain technology for cross-border remittances is finding many takers. Earlier this year in March, ICICI Bank had announced that it had successfully executed such transactions in partnership with Dubai-based, Emirates NBD. However, its use is still to acquire any significant scale. “Blockchain technology is playing a transformative role in the financial services industry worldwide. We are excited to partner with Federal Bank for integrating this new technology as it will enable us to ease the industry processes and make transactions more effective for our customers,” said Adeeb Ahamed, Lulu Exchange. Established in 2008, LuLu Exchange Holdings belongs to the Lulu Group promoted by MA Yusuff Ali. It has more than 170 branches spread across several GCC countries such as Oman, Kuwait, Qatar, Bahrain as well as India, Bangladesh, Philippines and Seychelles.