JP Morgan Chase announced this week it will replace its U.S. core banking suite with U.K.-based Thought Machine’s Vault.
Founded in 2014, Vault is a cloud native core banking engine that leverages smart contracts to help banks and fintechs build in the cloud and avoid the constraints of legacy technology. Vault provides a full range of retail and small business banking capabilities, including checking accounts, savings, loans, credit cards, and mortgages.
In the future, Thought Machine plans to build Commercial and Private Wealth offerings into Vault, as well.
JP Morgan, which was in the headlines yesterday for its purchase of college planning platform Frank, will benefit from Vault. The technology’s cloud-based nature will decrease the siloed structure that comes with most large, legacy banks. Instead, JP Morgan will operate as a universal banking platform where all products run on a single system.
“JPMorgan Chase represents one of the most ambitious, powerful financial institutions in the world—and our joint work signals to the finance industry that cloud native core banking technology is the future for financial services,” said Thought Machine CEO and founder Paul Taylor. “We are delighted to be working with JPMorgan Chase on this project, delivering modern core technology to the bank, and powering the next generation of financial services in North America.”
Thought Machine, which raised $125 million last year, is said to be working on another $205 million funding round. The company has seen significant growth over the past year and has scaled up its clients base to include Lloyds Banking Group, Standard Chartered, Atom bank, Monese, and SEB. Not only that, the company added 100 employees in the first half of 2020.
Photo by Sean Stratton on Unsplash
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Source: https://finovate.com/jp-morgan-taps-thought-machine-to-replace-retail-banking-core/
