UK-based Fintech Thought Machine Launches Customizable Smart Contracts for Repayments

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.”

 

Trov Debuts White-Label Insurtech Platform; Forms New Partnership With Lloyds Banking Group

Trov, a U.S.-based insurtech company, announced on Thursday it is officially launching its platform that provides end-to-end digital, white-labeled insurance products designed to be rapidly deployed by financial organizations and insurers.

Along with the platform, Trov also reported it has formed a partnership with Lloyd’s Banking Group and is planning to release insurance products designed for the “evolving” lifestyle of modern, connected UK consumers.

The Powered by Trov platform comprises four core insurtech modules, including Policy Sales (quoting, binding, billing, and adjustments), Claims (consumer and business interfaces), CRM (customer management), and Business Intelligence (conversion, engagement and risk analytics). These modules are the building blocks of the white-label insurance product line and can be configured for a variety of policy types including homeowners, renters, auto, and SMB.”

While sharing more details about the platform’s launch and partnership, Scott Walchek, Founder and CEO, Trov, stated:

“The launch of Powered by Trov marks the completion of our evolution from a single direct-to-consumer offering to a suite of robust, flexible insurtech applications that empower incumbents to offer relevant products to the latest generation of digital natives. We’re delighted that Lloyds Banking Group is joining us on our journey and excited to assist other financial institutions to remain competitive in the face of mounting competition by offering the types of digital insurance products their customers demand.”

Jeremy Ward, Home Insurance Commercial Director at Lloyds Banking Group, went on to add:

“We’re excited to explore how Lloyds Banking Group can better meet our customers’ changing needs. Modern consumers expect simple, engaging experiences in anything they do, and we’re looking forward to launching innovative new products to give our customers that kind of experience.”

Mondo’s Tom Blomfield Weighs In on Lloyds Banking Group Acquisition Rumors

Following the announcement that Mondo is planning to change its unique name, digital only challenger bank is now dealing with rumors that it may be acquired by London-based, Lloyds Banking Group.

Mondo Get StartedAs previously reported, Mondo Bank secured £1 million from investors through its Crowdcube initiative in just 96 seconds. The company saw 1,861 individuals invest on average £542 and over 8500 individuals registered interest in the offering. The funds raise is part of a £6 million funding round that saw participation from very prominent VCs like Eileen Burbidge’s Passion Capital.

According to Business Insider, CIO of Lloyds Banking Group, Jonathan Webster, was asked at the RFi Future of Retail Banking conference in London if the company was planning to purchase Mondo. The question was asked by an anonymous user of the event’s mobile app. Webster, who was sitting in a panel with Mondo’s co-founder Jason Bates, replied he could neither confirm nor deny, before adding that “there are an awful lot of things that can be learned” from the digital banking company.

Tom BlomfieldCEO of Mondo, Tom Blomfield, confirmed in an email to BI:

“We’ve considered acquisition options, but ultimately decided that acquiring Lloyds doesn’t make sense for Mondo right now. We may revisit this in future.”

Mondo is a digital challenger bank that wants to fix what is wrong with traditional banking. That means no more trips to the local branch. No more surly tellers. And all transactions will be handled online (or on your smartphone). Mondo is one of several disruptive banking startups preparing to challenge the banks of lore.

Lloyds Banking Group is one of the leading UK based financial services group that provides a range of banking and financial services, focused on personal and commercial customers. Its business activities are retail, commercial and corporate banking, general insurance, and life, pensions, and investment provision.

 

Mercator Advisory Group’s Research Reveals: Peer-to-Peer Lending Platforms Revolutionizing Traditional Practices

Mercator Advisory GroupMercator Advisory Group’s latest research, An Introduction to Peer-to-Peer Lending: A European Perspective analyzes the new and fast growing payments segment peer-to-peer (P2P) lending and the business models underpinning it.

The report focuses on P2P lending providers in the European market, in particular the U.K., profiling the leaders in both the consumer segment and the business lending market.

Tristan Hugo-Webb, Associate Director, Global Payments Advisory Service atMercator Advisory Group and the primary author of the research, stated:

Tristan Hugo-Webb“Because P2P lending volumes today are equivalent to only a small fraction of the lending undertaken by traditional financial institutions, P2P lending platforms can be viewed as an interesting development but not a competitive threat to traditional lenders. However, the emergence of P2P lending is a valuable new source of financing in the post-2008 global economic and financial world and has the potential to close the ‘credit gap’ in mature and developing markets and allow consumers and businesses to obtain financing that can benefit the overall economy.”

Highlights of the report include:

  • Overview of P2P lending models and business proposition for consumer and SME business lending segments
  • Review of European P2P lending landscape for both consumer and SME business lending with profiles of key players in both segments
  • Map of European P2P lending market identifying players targeting various countries
  • Examination of P2P lending regulatory models and perceptions in Europe and elsewhere around the world

P2P Word Cloud BoostCompanies mentioned in this report include: Bitbond, Funding Circle, Lending Club, Lloyds Banking Group, Peer2Peer Finance Association, Prosper, RateSetter, Royal Bank of Scotland, Santander UK, ThinCats, and Zopa. Also noted are Assetz Capital, Auxmoney, Call Credit, Comunitae, Bondura, Equifax, Finansowo, FriendsClear, FundingKnight, Lendico, Lending Works, Pret d’Union, Smartika, Smava, TrustBuddy, Zank, as well as MoneyAuction, Popfunding, Rangde, RainFin, and Society One.

This report contains 24 pages and 7 exhibits.

Julian Knight: Peer-to-peer lending is the future but users must take care

Zopa are expecting a doubling in the market for peer-to peer lending in 2013 as consumers and small businesses in particular turn zopatheir back on the traditional high-street banks.

Disillusionment is one reason for this and so, it seems, are the terrible returns on savings and often arbitrary and unfair bars put on borrowers.

The peer-to-peer lenders and the likes of campaign groups such as Move your Money would like us to become more like America where only about 25 per cent of lending is done through the banks.

Read More at the Independent