JP Morgan Chase to replace core banking system with Google-inspired cloud platform
US bank JP Morgan Chase is replacing its core banking system with a cloud-native system from UK fintech Thought Machine.
The Google-inspired system, known as the Vault, enables banks to provide customers with functionality and ease of use similar to those offered by internet giants.
The Thought Machine, which premiered in 2016, is a London-based brainchild of former Google executives, including Paul taylor, former head of speech synthesis for the Internet giant.
Following the announcement, Chase CIO Rohan Amin said the Vault platform would allow the bank to take full advantage of the cloud. “Its smart contract framework enables JP Morgan Chase to build on its world-class customer offering and continue to provide innovative and cutting-edge banking services to its customers,” he said.
The deal with JP Morgan Chase adds another big name to Thought Machine’s client list, which already includes Lloyds Banking Group, Atom Bank, Standard Chartered and Swedish SEB.
Thought Machine Founder and CEO Paul Taylor said, “JPMorgan Chase represents one of the world’s most ambitious and powerful financial institutions, and our joint work signals to the financial industry that core banking technology native to the cloud is the future of financial services. . “
Traditional banks are trying to move away from existing IT systems, which are expensive to maintain and inflexible when it comes to launching new digital offerings. Thought Machine offers them the ability to migrate customer accounts to a cloud native platform.
Taylor is heavily influenced by Google after his stint with the Internet giant. He was an academic at the University of Edinburgh in the 1990s and focused on research technologies, artificial intelligence (AI) and machine learning.
He then set up two companies – one of them, Phonetic Arts, was acquired by Google in 2010, which became Google’s text-to-speech system. It’s the system behind driving directions and Google’s voice search.
Separately, JP Morgan Chase this week launched its UK digital retail bank known as Chase. Through an app, the bank gives consumers an account they can sign up for in minutes, offering features to help them budget, manage their money, spend and save.
Sanoke Viswanathan, CEO of the bank’s International Consumer Growth Initiative, said: “We are offering people in the UK the opportunity to experience Chase for the first time with a simplicity-based checking account, a hassle-free rewards and exceptional clientele. service.
“Having spoken a lot to consumers across the UK, we know people want good value combined with a great experience, from a trusted bank.”