SEB Embedded, Swedish bank SEB’s banking-as-a-service (BaaS) platform, has selected Thought Machine’s cloud-native core banking platform, Vault Core, to power its new BaaS offering.
Leveraging Vault Core by Thought Machine, SEB Embedded launched a banking service for its first client, Hemköp, one of Sweden’s largest supermarket chains, in under 10 months.
The result is Hemköp Matkonto, a new product that offers single and joint current accounts to help customers manage their food budgets while earning loyalty points at the leading Swedish retailer. This service enables customers to load and spend funds, earn loyalty points and benefit from in-store discounts at Hemköp.
The product, which includes a linked debit card with Apple Pay, features essential self-service options, including card life cycle management such as freeze, block, reorder, setting/viewing PINs, and viewing card details for online purchases. SEB Embedded plans to scale the services to a broader customer base in the near future, with additional product launches and new clients anticipated throughout 2024.
Emelie Magnusson, head of SEB Embedded, commented: “With Vault Core, SEB Embedded aims to transform banking by seamlessly integrating excellent financial products into customers’ daily lives. Our long-standing partnership with Thought Machine, a technology leader by the highest standards, has empowered us to rapidly innovate and bring new solutions to market faster than ever before.”
Embracing BaaS
Using Vault Core’s smart contracts-based product-building framework, SEB Embedded developed the new offering with full control over its product roadmap–an advantage over traditional or cloud-retrofit core banking systems.
Paul Taylor, founder and CEO of Thought Machine
Paul Taylor, founder and CEO of Thought Machine, also said: “SEB Embedded’s go-live on Vault Core in under 10 months demonstrates the speed and control a truly cloud-native platform provides. By independently using our smart contract and Universal Product Engine system for this pioneering product, they’ve shown banks worldwide the possibilities that emerge when embracing modern engineering practices and moving beyond legacy systems.
“SEB Embedded is setting a new standard for innovation in banking through BaaS, and we’re excited that Vault Core is at the heart of this new service.”
SEB’s collaboration with Thought Machine was established in 2018, with the bank using Vault Core in SEBx, its innovation studio. SEBx was established to explore next-generation technology, which later inspired the creation of SEB Embedded; a service designed to enable businesses to embed and monetise financial services without becoming a bank.
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