Digital-only Atom Bank is to entrust its next generation of personal and business banking products to core banking startup Thought Machine

Set up by a gaggle of former Google engineers, Thought Machine has spent the last few years trying to solve one of the biggest problems in banking: how to replace the decades old legacy core systems which hamper the delivery of new customer-facing digital services.



The firm's answer is Vault, a cloud-native modern alternative that comes with a full suite of retail banking products that are implemented via a system of smart contracts and has cryptographic ledgers for watertight security.



Edward Twiddy, Atom’s chief innovation officer, says the deal will result in a "spectacular change" in the way the bank manages its products and serves its customers.



“The coherence and elegance of Thought Machine’s Vault platform offers Atom a radically innovative and agile alternative to traditional banking technologies. Vault’s unique features such as its smart contract system for products, and workflow engine for bank processes, enables Atom to develop a bank which transmits its vision and values through the business and into the hands of our customers.”



Earlier this month, Thought Machine announced an £11 million investment by Lloyds Banking group as part of an £18 million funding round.