In a released statement, Ripple Labs announced that Fidor Bank AG has become the first bank to incorporate Ripple’s protocol. This move will allow Fidor customers more money transfer options that are both fast and affordable. The German bank will use Ripple’s open payment protocol to proceed with intra-bank payments between branches, and inter-bank payments with different organizations. The CEO of Ripple Labs, Chris Larsen said,
“Ripple is changing the rules of the game for financial institutions, enabling real-time settlement in any currency to strengthen customer relationships and positively impact the bottom line.”
About Fidor adapting Ripple, Larsen commented,
“As an innovator and leader in the banking industry, Fidor is using Ripple to define a new standard for what a bank can be and how it can serve its customers.”
Fidor Incorporating Ripple Payment Protocol
Ripple is a payments protocol that is both decentralized and open. The protocol allows for trading of anything that has value through the web. With the implementation of Ripple, Fidor customers will be able to send money in whatever currency they wish at “highly competitive rates through existing Fidor money transfer products.” Customers will not have to make a Ripple account in order to use the protocol; instead they can use Fidor bank’s services normally and the changes will apply. Fidor Bank’s CEO, Matthias Kröner, said,
“Ripple enables us to securely and instantly send money anywhere in the world at no additional cost and through the same customer facing products and relationships we offer today. With Ripple, we can deliver a superior banking experience at a fraction of the time and cost traditionally expected of a financial institution.”
The other plus factor in the equation is that Ripple’ payment protocol allows customers instant payments with absolutely no charge-backs. Thus, Fidor bank will be able to benefit off of Ripple’s payments protocol by applying its services. Likewise, Ripple will be able to benefit off of Fidor bank’s incorporation of its payment protocol.
If this works out successfully, other banks may look to implement Ripple’s protocol in their services as well.
Image Courtesy Fidor Bank