UST FinX & Thought Machine partner to modernise mid-tier US banks

By Gloria Methri

UST FinX and Thought Machine have entered a strategic partnership to streamline digital transformation for mid-sized US banks and credit unions. The collaboration seeks to address long-standing challenges faced by financial institutions reliant on legacy core banking systems.

The joint offering combines UST FinX’s integration-ready financial services platform with Thought Machine’s cloud-native core banking technology. It is designed to help institutions modernise operations and improve digital capabilities without the need for large-scale, high-risk IT overhauls.

Mid-tier banks and credit unions in the US often face constraints due to ageing infrastructure and complex procurement processes. Many lack the technical flexibility to connect with modern fintech solutions, leading to costly workarounds. The new partnership offers a modular approach that allows financial institutions to adopt new services with greater ease and lower risk.

Instead of custom development, the platform supports easier integration with fintech solutions, offering a more iterative and predictable path to modernisation. UST FinX will manage the underlying technical framework and partnerships, allowing institutions to focus on product delivery and user experience improvements.

The partnership reflects a broader trend in the financial services sector, where smaller and mid-sized institutions are seeking more agile and cost-effective ways to upgrade their technology stack in response to evolving customer expectations.

Gareth Richardson, COO of Thought Machine, said, “Combining Thought Machine’s cloud-native technology with UST FinX’s financial services platform and capabilities allows banks of all sizes, especially those in the US mid-tier market, to access our core banking technology without the complexities of technical integrations. We’re excited to see how our joint clients prosper using the offering over the coming months.”

Sandeep Lalwani, Head of UST FinX, said, “Community banks and credit unions in the US are facing an existential crisis in remaining relevant in an increasingly competitive and digitally driven landscape with customers and staff expecting more. The need for transformational change is already upon us, and until now, the choices open to such organisations have been fraught with complexity, cost and risk. This strategic partnership with Thought Machine is a game-changer in our industry that will enable these mid-tier financial institutions to remain relevant, innovate, and thrive!”