10X Future Technologies, the fintech startup founded by former Barclays CEO Antony Jenkins, has signed a deal with challenger bank Virgin Money to build a new digital banking platform.
The deal comes just a day after 10X was first unveiled to the public. Jenkins said in a blog post on Monday that the startup was already “in advanced talks with a number of potential major clients.” The financial terms of the deal are not disclosed but a spokesperson for 10X described the deal to Business Insider as “significant.”
10X Future Technologies will build Virgin Money a cloud-based core banking system that will allow it to better analyse customer data, according to a release announcing the deal.
Jenkins, who serves as executive chairman of 10X, says in the release: “Our advanced data modelling and database design will help to develop an even deeper understanding of each individual customer and offer cutting-edge services for the digital age.”
Jenkins was CEO of Barclays for three years until he was pushed out in July 2015. Since then he has spoken often in public about fintech — financial technology. He said in a speech last November that banks were at risk of an “Uber moment” that would see nimble technology challengers steal market share from them. Reports surfaced in May this year that Jenkins was working on his own fintech venture.
10X says its finished platform will allow Virgin Money to offer products like credit cards and mortgages that are more tailored to individual customer needs.
10x Future Technologies is working on a cloud-based core banking system — the technology that allows banks to hold deposits and accounts. Essentially, it is the heart of banking, around which everything else is built.
Virgin Money CEO Jayne-Anne Gadhia says in the release announcing the deal: “10x Future Technologies is the perfect partner for us, providing us with advanced technology to build a truly digital banking platform and provide an even better banking experience that will be faster, easier to use and more cost-efficient.”
Gadhia says the 10X deal “will make Virgin Money more nimble than the large incumbent banks,” which should be “a real competitive advantage as we continue to grow.”
The deal with 10X comes alongside a third-quarter update from Virgin Money on Tuesday. The challenger bank recorded a 19% rise in gross mortgage lending to £6.5 billion in the third quarter and a 12% rise in deposits to £28.3 billion.
Virgin Money says it has “experienced continued strong customer demand and no evidence of material changes in customer behaviour” since the June 23 vote to leave the European Union, although it adds: “The Board continues to monitor the impact of the referendum.”
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