SEB Embedded goes live with Thought Machine to drive BaaS innovation

By Gloria Methri

SEB Embedded, the banking-as-a-service (BaaS) platform of Swedish bank SEB, has selected Thought Machine’s cloud-native core banking platform, Vault Core, to power its latest offering. Using Vault Core, SEB Embedded launched a banking service for its first client, Hemköp, a Swedish supermarket chain, in under 10 months.

Leveraging Vault Core’s advanced capabilities as the foundation of its new BaaS offering, SEB Embedded introduces Hemköp Matkonto––a first-of-its-kind product that offers single and joint current accounts designed to help customers manage their food budgets while earning loyalty points at the leading Swedish retailer. This service allows 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, said, “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. We’re proud to be experts in their technology, which makes product development easier and more agile.”

Thought Machine’s CEO and founder, Paul Taylor, added, “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.”

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.