SCB to add remittance options

Siam Commercial Bank (SCB) plans to expand cross-border remittance services through blockchain technology to euros and pound sterling by the third quarter of this year, after the service has gained traction.

There are strong flows of euros and pounds to Thailand from retail customers, said SCB chief strategy officer Arak Sutivong.

The service for European currencies is initially available for retail clients with inbound cross-border money transfers and the bank is searching for new correspondent banks in Ripple networks.

The bank's cross-border remittance through blockchain, which is only available for the Japanese yen, has trended positively, though the service is being tested out in the Bank of Thailand's regulatory sandbox, he said.

SCB may not need to experiment in the regulatory sandbox again if the move simply entails using other currencies because the service uses the same technological platform, said Mr Arak.

The bank is waiting for the central bank's approval to allow its cross-border remittance service to exit the sandbox after testing began last June.

"The service system has stabilised, while the Bank of Thailand wants to monitor it comprehensively," he said.

The central bank has adopted blockchain technology to serve commercial customers in the supply chain sector.

SCB, in collaboration with the Japan-based SBI Remit, uses Ripple's blockchain enterprise solution to power real-time remittance payments between Japan and Thailand. For the initial stage, the service is available for Thai retail customers who work in Japan and are looking to transfer money back home.

He said the bank has continued to expand its Thai client base in Japan. Some 40,000 Thais live in Japan, making it one of Thailand's largest locations for cross-border remittances. Total remittance flows from Japan to Thailand are roughly US$250 million (7.83 billion baht) a year.

SCB shares closed yesterday on the Stock Exchange of Thailand at 149 baht, up 50 satang, in trade worth 544 million baht.