Al Rajhi Bank Malaysia (ARBM) has selected Thought Machine to power its upcoming digital bank and bolster its position as an Islamic bank.

ARBM will deploy Thought Machine’s core banking engine, Vault, to launch a new digital bank in 2022.

The digital lender will offer a range of retail and SME financial services such as savings and financing products.

Al Rajhi Bank Malaysia will leverage Vault’s Universal Product Engine to design, launch and manage a full suite of products on a single architecture.

Additionally, the lender is working to build a full suite of Shariah-compliant products using Vault’s product building capabilities.

Al Rajhi Bank Malaysia CEO Arsalaan Ahmed said: “We are launching a state-of-the-art digital bank which will be differentiated by its high levels of innovation, customer convenience and reliability. We are tapping into the vast potential in technology offered by our key partners to help advance towards our vision of becoming the number one Islamic finance innovation bank in Malaysia.”

Thought Machine CEO and founder Paul Taylor said: “We are delighted that Al Rajhi Bank Malaysia has selected us to power their new bank. As a leader in Islamic banking, Al Rajhi Malaysia Bank has a considerable opportunity to launch an exceptional next-generation banking service – and we have no doubt they will succeed.”

Earlier this month, Saudi Arabian authorities approved Al-Rajhi Bank’s acquisition of Ejada Systems Company. The deal is aimed at developing products and services, especially in the digital banking space.