Pollen Street to buy Finastra core banking unit as lender tech shake-up continues

Pollen Street Capital has agreed to acquire Universal Banking, Finastra’s global core banking software business, in a deal that will carve out one of the group’s key technology divisions into a standalone company.

Universal Banking provides account and deposit management, payments, lending and treasury software for more than 150 customers across over 100 countries. Its users include global and regional banks, digital banks, Islamic banks and building societies.

The business includes Essence, Finastra’s cloud-first open banking platform, which is used by financial institutions seeking to modernise legacy systems while maintaining continuity across critical operations.

The sale comes as banks face growing pressure to upgrade infrastructure that supports lending, payments and treasury operations. Many institutions are trying to modernise gradually rather than replace core systems in a single high-risk migration.

Finastra said the transaction will allow it to sharpen its focus on payments and lending, where it sees stronger growth opportunities. Universal Banking will operate as an independent business after completion, led by its existing management team.

Chris Walters, chief executive of Finastra, said Universal Banking is a strong business with “talented people, proven products, and deep customer relationships”.

For banks, the deal matters because core banking systems remain central to product delivery, risk controls and operational resilience. Outdated infrastructure can limit digital lending, treasury visibility and payment automation.

Pollen Street said it will support investment in product development, including GenAI and data capabilities. The transaction remains subject to regulatory approvals.