Thought Machine Secures Cloud Banking Deal in Hungary

Magyar Bankholding wants a strong 'Foundation' and will use Thought Machine’s core banking platform, Vault, to power its new digital bank and launch a range of new digital-first retail products.

Core banking technology company Thought Machine’s hunger for action has been sated thanks to a new deal with Magyar Bankholding in Hungary.

Magyar Bankholding, which was established following a three-way merger of state-owned Budapest Bank, MKB Bank and savings group Takarekbank (MTB), will use Thought Machine’s core banking platform, Vault, to power its new digital bank and launch a range of new digital-first retail products.

The Hungarian entity has formed Foundation, a new division dedicated to building this digital bank.

Balázs Vinnai, Chief Advisor to the Chairman responsible for the tech overhaul of Magyar Bankholding, comments: “Thought Machine combines in-depth market knowledge with award-winning engineering expertise to create a product that is truly unique. We are confident that together we can build a new and exciting digital bank from Hungary’s second largest banking group.”

Paul Taylor, Founder and CEO of Thought Machine, adds: “Our partnership with the Magyar Bankholding team is a further demonstration of how established banks are taking technologies of tomorrow to create systemic change in banking.”

The bank plans to launch products and services enabling customers to save, pay and borrow – all in one place.

Foundation will be able to use the configurability built into Vault, which is designed “to allow banks to create any type of product” and “personalise them to the customer’s individual needs”.

Thought Machine’s clients include JP Morgan Chase, Standard Chartered, Lloyds Banking Group, Intesa Sanpaolo and ING Bank.

The company has raised more than $340 million (£250 million) in funding, at “a billion dollar plus valuation”, and has headquarters in London, with regional offices in New York, Singapore and Sydney.

The fintech firm has been doing well. It has picked up recent deals with Mascoma Bank in the US, Al Rajhi Bank Malaysia and Danish company Lunar.

Italian bank Intesa Sanpaolo also recently invested £40 million into Thought Machine and selected Vault to power its new digital banking platform.

Antony Peyton
Antony Peyton
Antony Peyton is the Editor of eWeek UK. He has 18 years' journalism and writing experience. His career has taken him to China, Japan and the UK - covering tech, fintech and business. Follow on Twitter @TonyFintech.

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