London-based Thought Machine, a Fintech firm that aims to address the banking sector’s dependence on legacy IT infrastructure, revealed on November 6 that it’s launching “Vault Rare.”
Vault Rare is a new product that will be integrated on top of Thought Machine’s cloud-native banking platform, Vault. This, according to a press release shared with Crowdfund Insider, which noted that the UK-based Fintech has teamed up with Atom Bank and Lloyds Banking Group, which has reportedly invested £11 million into Thought Machine’s operations.
The company’s software will allow financial institutions to develop customizable smart contracts with their clients, who will be able to make changes and customize products, such as loans and mortgages. There will be many options to make the product suit their specific needs and they will be able to immediately see the impact of their configurations on their repayments schedule, the release noted.
For instance, a bank could allow a million customers to have a million differently configured loans. The release explained:
“Think payments gaps over Christmas, sabbatical opt out periods, daily repayments rather than monthly, tailored loan repayment terms, overpayment clauses and so on, all built into the application process.”
The firm’s new technology can calculate how all these variables can change the repayment schedule in only “1/5 of a second,” the release stated.
It also mentioned:
“Inspired by Nike’s customizable trainers, banking is now able to hand the levers of finance product design over to the customer. Any variable can be programmed into the smart contract, giving banks the ability to create their own competitive advantage by offering something truly different and handing control back to the customer.”