Oracle Customer Success—Arab Jordan Investment Bank (AJIB)

AJIB Expedites Cross-Border Money Transfers with Oracle Blockchain

Oracle delivers an enterprise-grade blockchain platform with high resiliency, scalability, and security. The built-in features, such as identity management and data encryption, made it an ideal choice given our industry requirements and compliance needs.

— Ayman Qadoumi, Deputy General Manager, Information Technology and Security, Arab Jordan Investment Bank (AJIB)

AJIB Boosts Speed, Security, and Reliability of Cross-Border Money Transfers with Distributed Ledger Technology on Oracle Blockchain Platform

Arab Jordan Investment Bank (AJIB) provides retail, corporate, and investment banking services in Jordan, Cyprus, and Qatar. Sending money between subsidiaries has historically relied on a network of correspondent banking relationships and third-party intermediaries, leading to slow and costly transactions for both AJIB and its customers. In addition, it required sharing customer information with third parties—a process involving strict regulatory requirements with occasional conflicts between different jurisdictions. AJIB aimed at reducing the costs and the time required for cross-border payments, while making the entire process more secure and efficient.

Business Challenge

Provide innovative financial services to customers by executing cross-border payments substantially faster, while making these transactions more efficient and transparent
Reduce the cost of money transfers between subsidiaries by removing third-party intermediaries with accompanying fees and charges that occur at each transactional stage of a transfer
Increase data privacy and data security by eliminating the need to share customer data with correspondent banks and third-party intermediaries
Ensure protection of customer money by increasing resiliency to cyberattacks with high levels of data replication and no single points of failure

Results

Deployed Oracle Blockchain Platform to replace the banking application previously used for money transfers between AJIB entities—running it as a proof of concept between AJIB’s headquarters in Amman and its Cyprus branch, and anticipating going public after regulatory approval
Delivered nearly instant cross-border payments—down from two to three business days—with lower costs, higher security, and more reliability, responding to customer demand for convenience, speed, and simplicity of money transfers
Enabled banking staff—shortly to be followed by customers as well—to track the payment end to end and confirm that it has arrived at the accurate destination
Made it easy for senders and receivers to track money transfers while the funds are in transit, providing transparency to both parties about the exact timing and amount

Eliminated the need to work with third-party intermediaries for processing inter-banking transactions—slashing operational costs and making AJIB less dependent on external providers
Ensured that payments are tamper-proof and accurate, substantially reducing the time and costs associated with labor-intensive investigation of errors such as incorrect account details
Increased data privacy and security by leveraging the built-in identity management and data encryption features of Oracle Blockchain Cloud Service
Accelerated application development and integration with existing core banking services and country-specific regulators that validate each money transfer to prevent money laundering and financial fraud using the Oracle REST APIs

Arab Jordan Investment Bank (AJIB) is an early adopter of distributed ledger technology. The successful deployment of Oracle Blockchain Platform is the beginning of a new journey for AJIB. We are looking forward to using this transformative technology across different banking solutions to fulfill our customers’ evolving financial needs.

— Hani Al Qadi, Chairman, Arab Jordan Investment Bank (AJIB)

About Arab Jordan Investment Bank (AJIB)

Headquarters

Amman, Jordan

Employees

750

Annual Revenue

US$135 Million [JOD 95.73 Million]

Arab Jordan Investment Bank (AJIB)

Over more than three decades, Arab Jordan Investment Bank (AJIB) has built a reputation for excellence and leadership as one of Jordan’s leading investment and commercial banks. AJIB also provides professional investment and brokerage services at the Amman Stock Exchange through its subsidiary, The United Arab Jordan Company for Investment and Financial Brokerage.

Partners

ICS Financial Systems delivered one of the largest blockchain implementations in the Middle East & Africa (MENA) region with the blockchain proof of concept for AJIB. The proof of concept uses ICS BANKS Blockchain Adapter integrated with Oracle Blockchain Platform to simplify electronic fund transfers while reducing cost, increasing efficiency, and improving security.

“The ICS Blockchain Adapter is integrated with our core banking, digital banking, sanctions compliance, and anti-money-laundering systems. Through this collaboration, AJIB can now execute fund transfers between its subsidiaries or bank-to-bank securely, faster, cheaper, and in nearly real-time. The adapter is very easy to integrate and allowed us to create a proof of concept in record time,” Qadoumi said.

Oracle Solutions Used

Oracle Blockchain Platform

Published: Jan 23, 2019