Thought Machine Helps Standard Chartered Launch Digital Bank in Hong Kong

Standard Chartered has selected Thought Machine to provide core banking capabilities for its new digital bank launching in Hong Kong, reports Alex Hamilton of Fintech Futures (Finovate’s sister publication).

The new venture, for which Standard Chartered received a virtual banking license from the Hong Kong Monetary Authority (HKMA), will be unveiled later this year.

According to Deniz Güven, CEO of the as-yet unnamed bank, the selection of the right vendors was a crucial part of building out the bank’s capabilities.

He told FinTech Magazine that Thought Machine would be used as the bank’s “powerful product engine.”

The virtual bank is also using payments processor Paymentology, deploying Netsuite from Oracle and working with FICO to build out its credit business.

According to a May blog post from Güven, it has gone from a core team of ten people to more than 100 members of staff.

“We saw our chance to build a bank with a totally new operating model: new, cloud-based technology from the ground up,” wrote the CEO at the time, “a new way of onboarding clients, new anti-money laundering and fraud systems designed from the client’s viewpoint.”

Thought Machine demonstrated its core banking technology, Vault, at FinovateEurope 2018. Headquartered in London, U.K., and founded in 2014, Thought Machine has raised more than $23 million (£18 million) in funding, and includes Lloyds Banking Group and Backed VC among its investors.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Thought Machine Teams Up with Sweden’s SEB

SEB, the Swedish financial group, has partnered with core banking firm Thought Machine in a project which will see the former deploy a new banking platform in its innovation studio, SEBx, reports Alex Hamilton of Fintech Futures (Finovate’s sister publication).

SEBx is implementing Vault, Thought Machine’s flagship cloud-hosted core banking system.

According to Nicholas Moch, group CIO of SEB, the innovation studio has a “clear mandate for exploring tech to create next generation customer offerings.”

“Having the opportunity to build a bank from the ground up within SEBx, we are determined to work with partners that bring new perspectives to a traditional industry, and the team at Thought Machine does that,” Moch said.

SEB launched its innovation studio in July, and describes it as an initiative for testing new technologies, alternative technology platforms and new services. The studio currently employs 16 people.

The bank’s CEO, Johan Torgeby, told Swedish media at the time that SEBx could become a separate company in the future.

Paul Taylor, CEO and founder of Thought Machine, said of the project: “SEB is one of the most innovative banks in Europe, and it is significant that they have decided to deploy Vault as part of their technology exploration.”

SEB’s activities mainly comprise retail and corporate banking, but it also dabbles in life insurance and pensions. Founded in 1972, it operates subsidiaries in Denmark, Estonia, Germany, Latvia, Lithuania, Ukraine and Russia.

Thought Machine demonstrated its core banking solution, Vault, at FinovateEurope 2018. Founded in 2014 and headquartered in London, U.K., the company has raised $22 million (£18 million) in funding from investors including Lloyds Banking Group, Backed VC, and IQ Capital.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.

Thought Machine Announces Strategic Partnership with Lloyds Banking Group

Lloyds Banking Group has taken a 10% stake in core banking technology provider Thought Machine. The investment of $14.4 million (£11 million) represents the lion’s share of the company’s $23.6 million Series A round (£18 million) and is part of a strategic partnership that will help Lloyds reach its digital transformation goals.

Lloyds will leverage Thought Machine’s Vault solution, a cloud-based, next generation core banking platform to provide its customers with more personalized solutions, as well as accelerating the development cycles for additional digital banking additions. Lloyds noted in a press release that not only has it “completed extensive testing and proofs of concept” with Thought Machine, but also that the firm plans to continue helping develop Vault’s capabilities.

Thought Machine CEO and founder Paul Taylor and Chief of Sales & Marketing Travers Clarke-Walker demonstrating Vault at FinovateEurope 2018.

“A key part of our recently launched three-year strategic plan is applying technology innovation to meet our customers’ evolving needs,” Lloyds Group Director for Transformation Zak Mian explained. “I’m really excited to work with the Thought Machine team to explore ways to simplify and enhance our IT architecture and (help) on our journey to make banking easy and simple for customers.”

Founded in 2014 and headquartered in London, U.K., Thought Machine demonstrated Vault at FinovateEurope earlier this year. The flexible, end-to-end, cloud-based platform comes with a full suite of banking solutions including current accounts, loans, savings, mortgages, and credit cards – all delivered via Vault’s system of smart contracts. Driven by what Thought Machine founder and CEO Paul Taylor called a reaction to “the horror of the legacy IT systems” used by banks, Thought Machine and its team of 60 are dedicated to helping banks provide their customers with the “quality and richness of service they deserve.”

“We are delighted to announce this partnership with Lloyds,” Taylor said. “Lloyds has shown a deep commitment to embrace the opportunities that new technologies can bring in improving customers’ banking experience and it is a pleasure to take this partnership forward.”

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This post will be updated throughout the day as news and developments emerge. You can also follow all the alumni news headlines on the Finovate Twitter account.