Bank launches Blockchain Cross Border Transfers

Description

As a market leader in the use of new financial technology and catering to the evolving needs of customers, AJIB was the first bank in the MENA region to launch the Oracle Blockchain Cross Border Transfers between AJIB subsidiaries that offer instant,  more secure, and cost efficient transfers through AJIB Online available 24/7 to customers. The Bank successfully implemented the first transfer of funds between its headquarters in Jordan and its Cyprus Branch, marking a new leap for AJIB in the world of advanced financial technology. The move comes as a result of the Bank’s endeavor to provide the latest financial services to its customers and continue its approach to growing.

Use case focus for the Cross border transfers:

  • Provide innovative financial services to customers by executing cross-border payments substantially faster, while making these transactions more efficient and transparent
  • Reduce the cost of money transfers between subsidiaries by removing third-party intermediaries with accompanying fees and charges that occur at each transactional stage of a transfer
  • Increase data privacy and data security by eliminating the need to share customer data with correspondent banks and third-party intermediaries
  • Ensure protection of customer money by increasing resiliency to cyberattacks with high levels of data replication and no single points of failure
Benefits & Outcomes
  • Deployed Oracle Blockchain Platform to replace the banking application previously used for money transfers between AJIB entities—running it as a proof of concept between AJIB’s headquarters in Amman and its Cyprus branch, and anticipating going public after regulatory approval
  • Delivered nearly instant cross-border payments—down from two to three business days—with lower costs, higher security, and more reliability, responding to customer demand for convenience, speed, and simplicity of money transfers
  • Enabled banking staff—shortly to be followed by customers as well—to track the payment end to end and confirm that it has arrived at the accurate destination
  • Made it easy for senders and receivers to track money transfers while the funds are in transit, providing transparency to both parties about the exact timing and amount
  • Eliminated the need to work with third-party intermediaries for processing inter-banking transactions—slashing operational costs and making AJIB less dependent on external providers
  • Ensured that payments are tamper-proof and accurate, substantially reducing the time and costs associated with labor-intensive investigation of errors such as incorrect account details
  • Increased data privacy and security by leveraging the built-in identity management and data encryption
  • Accelerated application development and integration with existing core banking services and country-specific regulators that validate each money transfer to prevent money laundering and financial fraud
Links
Further Info

Arab Jordan Investment Bank (AJIB) provides retail, corporate, and investment banking services in Jordan, Cyprus, and Qatar. Sending money between subsidiaries has historically relied on a network of correspondent banking relationships and third-party intermediaries, leading to slow and costly transactions for both AJIB and its customers. In addition, it required sharing customer information with third parties—a process involving strict regulatory requirements with occasional conflicts between different jurisdictions. AJIB aimed to reduce the costs and time required for cross-border payments, while making the entire process more secure and efficient.

In order to boost speed, security, and reliability of cross-border money transfers with distributed ledger technology, AJIB deployed Oracle Blockchain Platform in what has become the largest blockchain deployment in the Middle East.

Before using blockchain, money transfers between AJIB subsidiaries were processed by third-party intermediaries that charged fees at each stage of a cross-border transfer transaction. AJIB needed to reduce the costs and the time required for cross-border payments, while making the entire process more secure and efficient.

Status

This Project was Launched

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