Malaysia’s Malayan Banking Bhd (Maybank) has entered into a partnership with the National Bank of Cambodia (NBC) to develop blockchain-powered cross-border payment systems to facilitate remittances for customers in both countries.
According to Cointelegraph, Maybank and NBC recently signed a memorandum of understanding (MoU) which will allow the financial institutions to transfer funds overseas using the Bakong payment system — a blockchain-powered platform developed by the NBC — combined with Maybank’s digital platform Maybank2u.
Chea Serey, Assistant Governor and Director-General of Central Banking for NBC, revealed that NBC’s Bakong platform can help improve the payment system while the MoU will help the bank serve customers better.
“The MoU will enable both institutions to reach another level of financial cooperation in further leveraging the technology to benefit the people in Cambodia and Malaysia,” Serey said.
In 2018, over 66% of all mobile banking transactions in Malaysia were made using the Maybank app, according to The Edge Markets. Moreover, over 52% of all internet banking transactions were conducted through Maybank’s digital platform.
Meanwhile, NBC’s Bakong mobile app was launched in July 2019, with officials revealing that the peer-to-peer payments app is aimed at serving the unbanked in Cambodia and ensuring more financial inclusion.
Elsewhere in Southeast Asia, banks are working to develop blockchain-powered platforms that will lower costs for remittances. One example is a pilot project initiated by Philippines-based UnionBank and Singapore-based OCBC Bank in July 2019, when the banks carried out a trial to remit tokenized fiat currency from Singapore to an account in the Philippines.
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