Money Transfer Firm Bloom Looks at Blockchain to Expand in Southeast Asia
Philippines-based money transfer company Bloom has partnered with a financial technology firm to utilize blockchain technology in expanding to the Southeast Asian markets.
A Manila, Philippines-based money transfer company is looking at blockchain technology to expand its operations in Southeast Asia, Silicon Angle reported.
Bloom Inc., has teamed up with Remiit Project, a distributed ledger technology (DLT)-powered remittance platform, to offer its services to markets in the Southeast Asian region. Under the deal, Bloom and Remiit will implement the blockchain platform in the money transfer service as well as find new marketing partners for market distribution channels.
Stevie An, Remiit Chief Executive Officer, commented:
“Bloom is a trustworthy company and has never had a problem in the past two-and-a-half years with more than 100,000 remittance transactions to the Philippines.”
Data released by the Bangko Sentral ng Pilipinas (BSP), the country's central bank, shows that a huge 70 percent of the adult population remains unbanked and has no access to financial services. Bloom claims to provide the delivery tool for these underserved sectors to gain access to the global economy by giving a cheaper and safer alternative to sending and receiving money.
For its part, Remiit is using the power of the blockchain technology to transfer money at a lower cost and even hasten the completion of each transaction. The company has developed its platform based on DLT to promote the mass adoption of blockchain technology, particularly in the global $650 billion annual remittance and payments industry.
Bloom will join Remiit’s early testing partners, and be included in pilot-testing the company’s blockchain platform that is developed to provide a user-friendly, error-free, and faster remittance system.
“By sharing our long-term vision with Bloom, we will strive to cooperate with each other to become the Eastern Union of Asia by 2020,” An said.
BSP Governor Nestor Espenilla Jr. has said that the central bank and commercial banks in the Philippines are looking to capitalize on blockchain technology to improve money transfer services while promoting financial inclusion, particularly for the underserved sector.
The Philippines’ remittance volume is estimated to reach $42 billion by 2023 based on a study by data provider Ken Research, which is seen to boost the need for technological innovation, especially cryptocurrencies, biometrics and wearable technologies.
The study said the expansion of financial inclusion in the Philippines offers more opportunities for banks to increase their market penetration.