UK-based banking startup Thought Machine, founded by a group of former Google engineers, has signed a global implementation partnership deal with IBM, gaining a major partner in its efforts to win over big clients.
In an attempt to solve the issue of replacing the older systems that hamper the delivery of new customer-facing digital services, Thought Machine has created Vault. Vault is a cloud-native modern banking system that comes with a full suite of retail banking products implemented via a system of smart contracts and cryptographic ledgers.
Digital-only challenger Atom Bank has already signed on for the technology, while Lloyds Banking Group made an investment in Thought Machine as part of a strategic partnership. IBM has previously been a part of that process, working with Lloyds to explore Vault’s functionality and ability to deliver value for the bank and its customers, as well as the options available for further development and roll-out of the platform.
Jesus Mantas, a Managing Partner of IBM Global Business Services, says: “Most banks are constrained by their legacy core banking systems. Vault offers the first core banking platform built in the cloud from the ground up, massively scalable and with the flexibility to create and launch new products and services in days versus months, at unprecedented levels of cost and speed. “Our relationship with Thought Machine enables us to provide a lower risk option for banks to reduce the cost of operations and increase customer service and speed to market.”
Zak Mian, Group Director, Transformation, Lloyds Banking Group, said: “A key part of our recently launched three-year strategic plan is applying technology innovation to meet our customers’ evolving needs. I’m really excited to work with IBM and the Thought Machine team to explore ways to simplify and enhance our IT architecture and helping on our journey to make banking easy and simple for customers.”
“Banks have built interface layers with more modern technology, but there is only so far you can go before the foundations themselves have to be replaced. Building the new foundations for banking is Thought Machine’s mission and Vault is Thought Machine’s next-generation core banking platform. This specially designed cloud-native new platform has been written to bring a modern alternative to current platforms that many banks around the world are struggling to maintain” said Paul Taylor, Chief Executive Officer of Thought Machine.
“Most banks are constrained by their legacy core banking systems. Vault offers the first core banking platform built in the cloud from the ground up, massively scalable and with the flexibility to create and launch new products and services in days versus months, at unprecedented levels of cost and speed. Our relationship with Thought Machine enables us to provide a lower risk option for banks to reduce the cost of operations and increase customer service and speed to market” said Mark Foster, Senior Vice President, IBM Global Business Services.
