- Core banking technology innovator Thought Machine has signed a partnership with Intesa Sanpaolo, Italy’s largest bank by total assets.
- As part of the partnership, the bank has invested $54m (£40m) in the UK-based fintech.
- The partnership with Intesa Sanpaolo is the third banking partnership Thought Machine has secured this year.
UK-based core banking technology company thinking machine signed its third banking partnership of 2022 this week, partners with Italian bank Intesa Sanpaolo. The collaboration will bring Thought Machine’s core banking engine, To jump, to the Italian financial institution, which will use the technology to power its new Isybank digital banking platform. The new platform will initially be aimed at the bank’s four million retail customers in Italy. Beyond that, Intesa Sanpaolo plans to deploy Thought Machine’s core banking technology more broadly across its infrastructure, replacing core mainframe-based technology with cloud.
Highlighting the digital preferences of its younger customer base, Intesa Sanpaolo CEO Carlo Messina said: “This new digital bank will evolve our retail business from incumbent to fintech challenger in the mass market, with the possibility to expand internationally.
In addition to the technology partnership, Intesa Sanpaolo has announced that it will invest $54m (£40m) in the UK-based banking technology company. The funding brings Thought Machine’s total capital to over $402 million.
“We chose Thought Machine as our partner because of its international position as a fintech innovator,” Messina added. “We believe so strongly that Thought Machine is the right partner for this transformation that we are also announcing our investment in the company to be part of its growth story.”
With 13.5 million customers in Italy and 7.1 million customers worldwide, Intesa Sanpaolo and its subsidiaries are active in 12 countries in Central and Eastern Europe, as well as in Egypt. The bank is Italy’s largest by total assets and one of the 30 largest banks in the world.
A Finovate alumnus since its debut at FinovateEurope in 2018, Thought Machine has sealed partnerships with three banks so far in 2022, including Intesa Sanpaolo. Thought Machine started the year by announcing that Al Rajhi Bank Malaysia (ARBM) would leverage its technology to build an Islamic digital bank Later this year. ARBM is a subsidiary of Al Rajhi Bank of the Kingdom of Saudi Arabia, the world’s largest Islamic bank by assets. The deployment of Thought Machine’s Vault is part of a multi-year digital transformation project launched last year by ARBM. The bank has credited Vault’s product creation functionality for enabling it to create a full suite of Sharia-compliant banking products.
Also this year, Thought Machine announced that Mascoma Bank American Mutual Savings Bank will deploy Vault and migrate its customers to the new technology. As a Certified B Company serving customers in the New England states of New Hampshire, Vermont and Maine, Mascoma Bank will use Vault to both innovate and add new solutions to its product line, as well as to provide the institution with a single source of records and house all of its data in one place to more easily understand and serve its customers.
“We believe modern technology is the key to unlocking superior customer service,” said Mascoma Bank President and CEO Clay Adams. “At Mascoma Bank, we pride ourselves on being different by design – we are embracing modern Thought Machine technology to fulfill our mission to better serve our customers and communities, deliver new products and be a leader in banking community.