Ethos and Thought Machine Launch New Shariah-Compliant Banking Service
Ethos Ventures, a UK-based financial services company, has partnered with Thought Machine, a cloud-native banking technology company, to introduce a Shariah-compliant digital banking service. This collaboration leverages Thought Machine’s Vault Core platform to deliver seamless, real-time financial solutions accessible via mobile devices. It will initially target Muslim communities and expand to other ethically minded consumers in the UK.
Launching Shariah-Compliant Financial Products
We've partnered with @ethosventuresuk to launch a digital, Shariah-compliant banking service, a significant milestone for the UK financial services industry.
Ethos will debut with a Shariah-compliant deposit account (Mudaraba structure) and a Home Purchase Plan mortgage (Musharakah and Ijarah structure). By deploying Thought Machine’s Vault Core and utilising its global Product Library, Ethos can offer a comprehensive range of expertly designed Shariah-compliant products. This customisable approach allows Ethos to build differentiated and personalised services, marking a significant step in ethical banking innovation.
Empowering Ethically-Minded Consumers
At the core of Ethos’s mission is the belief that individuals should be able to uphold their ethical and religious principles while accessing state-of-the-art financial services. Hasan Raza, CEO of Ethos, emphasised, “We are thrilled to announce our partnership with Thought Machine, a company renowned for its superior product design. We assessed all the next-generation vendors in the market. Vault Core offered the high availability, performance, flexibility, and personalisation required to provide customers with modern banking benefits while honouring their community traditions.”
Expanding Horizons Beyond the UK
Looking beyond the UK, Ethos has global ambitions, with plans to expand its services to new markets such as Saudi Arabia and beyond. Vault Core’s universal and highly configurable nature makes it easily adaptable to the specific banking regulations and customer requirements of different regions, positioning Thought Machine as an ideal partner for Ethos’s international expansion goals.
Thought Machine’s Broader Impact
Paul Taylor, CEO and Co-Founder of Thought Machine highlighted the significance of this partnership, stating, “Ethos is set to deliver a groundbreaking banking service tailored to specific community needs and values. With product excellence embedded in Vault Core’s DNA, Ethos can provide modern, Shariah-compliant banking services without compromise. This partnership is a pivotal moment for the banking industry, and we are proud to be part of it.”
Building a Diverse Client Base
Thought Machine’s client roster includes prominent banks such as Lloyds Banking Group, Standard Chartered Bank, Jordan Ahli Bank, and Al Rajhi Bank Malaysia. The company’s partnerships with Atom Bank, C6 Bank, and Ethos underscore its ability to support specialised, mission-driven challenger banks and the world’s largest Tier 1 banks.
Conclusion
Ethos’s collaboration with Thought Machine represents a significant advancement in ethical banking, merging modern technology with Shariah-compliant financial solutions. By utilising Vault Core, Ethos can offer personalised, ethically-aligned banking services, initially targeting UK Muslim communities and aiming for global expansion. This partnership not only enhances the accessibility of value-driven financial services but also sets a new standard in the banking industry, ensuring that customers can maintain their ethical and religious principles while benefiting from cutting-edge technology.
