Mitsubishi UFJ Bank and Bradesco Bank announce that they will develop an international remittance system using Ripple's technology.

On November 9, 2018, Mitsubishi UFJ Bank Limited (MUFG Bank) of Japan and its subsidiary Banco MUFG Bank Brasil (Brazil) announced the signing of a memorandum for cooperation on developing new international remittance with Banco Bradesco S.A. (hereinafter Bradesco Bank).Memorandum of Understanding Signedto this effect.

MUFG Bank and its wholly owned subsidiary MUFG Bank (Brazil) have, through this occasion, signed a memorandum of cooperation with Banco Bradesco S.A. (hereinafter Bradesco Bank) for the development of a “new international remittance” between Japan and Brazil.

Quote: Nikkei“Mitsubishi UFJ Bank, Bradesco Bank of Brazil sign memorandum on cooperation for development of new international remittance”

What is the Relationship Between Bradesco Bank and MUFG Bank?

Source:Nikkei Newspaper “Bradesco Bank branch at Liberdade Square in São Paulo”

Bradesco Bank is one of the leading financial groups representing South America and is said to be one of Brazil’s four major banks.

The relationship between Bradesco Bank and MUFG Bank began in 1973 when MUFG Bank (then Sanwa Bank) invested in Bradesco Bank, and they have built a strong partnership for over 40 years.

In September 2017, Bradesco Bank and MUFG Bank signed a memorandum of cooperation in the FinTech field, and the current “development of remittance using Ripple’s technology” is part of this FinTech collaboration.

With this announcement, the two banks stated that they will “advance toward practical and commercialized fast international remittance with high transparency and traceability” through joint development.

Why Bradesco Bank and MUFG Bank Use Ripple’s Remittance Technology

Ripple also announced the Bradesco Bank and MUFG Bank announcement on its official Twitter.

Ripple’s remittance software, developed by Ripple, adopts the Internet Protocol and enables messaging between banks and instant settlement/credit before and after payment.

However, the traditional international remittance system adopted wasSWIFT, a standard.

But SWIFT has the following issues and has faced many troubles.

• Money flow is opaque
• High fees due to routing through many banks
• Slow settlement and crediting speeds

For details on the issues with SWIFT, see below.

>>>What is SWIFT? A thorough explanation of differences, mechanisms, and issues with Ripple’s international remittance!

Ripple’s international remittance software, developed by Ripple, comprehensively (and thoroughly) solves all the problems that SWIFT faces, and in about two months from October, the number of participants in the Ripple Network increases toover 200participants.

SWIFT was established in the 1970s, but it cannot match the performance of Ripple software.

However, SWIFT also has aspects where it outperforms Ripple.

The strong point is that SWIFT has over 11,000 partner institutions worldwide, and in terms of scale, SWIFT has the upper hand.

Furthermore, SWIFT recently announced a plan to upgrade SWIFT in partnership with Microsoft, a major global IT company.

>>>Partnership between SWIFT and Microsoft! How does Ripple (XRP) differ, and is it convenient for international remittance?

Compared with Ripple, SWIFT has the edge in scale, but the reason Bradesco Bank and MUFG Bank adopted Ripple is, after all,for future considerations.

Is Ripple’s Momentum Unstoppable?!

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