The Royal Bank of Scotland (RBS) is exploring the possibility of using Ripple Network. It has already started working on the proof of concept with Ripple Technology for its next technology upgrade.
The advantages offered by Bitcoin and Blockchain to the banking sector is pretty obvious now, especially after the recent report jointly published by Santander along with Oliver Wyman and Anthemis Group. Titled “The FinTech 2.0 Paper”, the report states the importance of Blockchain technology in banking sector and the possible savings by banks on infrastructure. It estimates that if the banks incorporate Blockchain technology into their operations, they can save about $15 billion to $20 billion by 2020 on infrastructure and compliance costs.
Many banks have already started investing on research, to understand the feasibility of incorporating Blockchain technology into their day to day operations, while some have already gone ahead and started using Blockchain and Ripple Network. The Commonwealth Bank of Australia recently entered into a partnership with Ripple Network for fund transfer between its branches.
In an announcement, the chief administrative officer of RBS – Simon McNamara mentioned the bank’s three year transformation plan which includes incorporation of Ripple Protocol or other similar protocol. This announcement came the day after RBS experienced a software glitch, resulting in over 600000 transactions going missing. RBS and its sister brands – NatWest, Coutts and Ulster Bank have a history of software malfunctions in the recent days which has forced them to look into other effective ways of managing their operations.
Apart from Ripple Network, RBS is looking into other digital currencies. The RBS Technology Solutions Centre in Edinburgh called ‘Design in Action’ has entered into collaboration with various Scottish universities, setting up Chiasma (an innovation program for prototyping business ideas based on new technologies) to find alternative cryptocurrency based solutions.
RBS, which was once the world’s largest bank is now striving hard to get back to its previous glory. Cryptocurrency and Blockchain technology will help it grow faster.