Deutsche Bank selects Thought Machine to modernize core

Deutsche Bank’s private bank has signed a 10-year agreement with Thought Machine to adopt the fintech’s Vault Core platform and reduce its core systems from 15 to two cloud-based platforms. Vault Core will serve as the primary engine for banking and lending in the private bank’s personal banking and wealth management operations.

Development work on the migration has started and testing is scheduled for the end of this year. Product migrations to the cloud will be phased beginning in 2027. During the transition, Deutsche Bank will run existing systems in parallel with the new platform to limit disruption while services move in stages.

The bank said the programme aims to replace fragmented legacy systems, simplify its technology landscape and speed up time-to-market for new products through a more client-focused operating model. Deutsche Bank expects the cloud-native design, which separates product logic from underlying infrastructure, to improve resilience, scalability and flexibility across its private banking operations.

Christian Rhino, chief information officer at Deutsche Bank’s private bank, commented: “Modernising our core banking landscape is one of the most significant technology transformations currently underway in the private bank. Vault Core provides a modern, cloud-native foundation that enhances resilience, scalability and flexibility. By separating product logic from underlying infrastructure, we will be able to develop, adapt and deploy products more efficiently over time, while progressively reducing reliance on fragmented legacy systems.”

Thought Machine, founded in 2014 by former Google executives, offers Vault Core as a cloud-based banking software stack designed for product configuration and real-time processing. Paul Taylor, one of the company’s founders, commented: “Deutsche Bank is setting a clear precedent for how major international banks can modernise their core infrastructure. Replacing disjointed legacy systems with a modern architecture gives the bank the real-time capability needed to streamline operations, strengthen system reliability and deliver superior customer experiences at scale. We are delighted to enter into this decade-long partnership.”

Yiping Li, chief operating officer of Deutsche Bank’s private bank, said the platform selection moves the organisation from strategy to execution and will create a more scalable foundation for future growth. She added the programme is intended to deliver a better experience for clients and employees while strengthening the bank’s operational foundations.

The bank plans to migrate products to the new platform in multiple phases so services remain available while the private banking technology stack transitions to the cloud.