Finastra is selling its Universal Banking business to Pollen Street Capital as it narrows its focus on payments and lending. Financial terms were not disclosed.
The deal follows Finastra’s recent sale of its US Mid-Market banking business to CORA Group, which covered core banking, digital banking and analytics products.
Universal Banking provides core banking software for account and deposit management, payments, lending and treasury operations.
It serves more than 150 customers in over 100 countries, including global and regional banks, digital banks, Islamic banks and building societies.
Its main platform, Essence, is a cloud-first open banking platform used by financial institutions to modernise legacy systems and support digital banking services.
Pollen Street’s investment will support Universal Banking as it becomes a standalone business, with funding expected to go towards product development, data and GenAI capabilities, and customer delivery.
Finastra CEO Chris Walters said,
“Universal Banking is a strong business with talented people, proven products, and deep customer relationships. Under Pollen Street Capital, it will have the dedicated focus and investment to build on that strength.
For Finastra, this allows us to sharpen our focus on payments and lending—areas where we see significant opportunities to grow and deliver even greater value for our customers.”
Anastasia Kovaleva, Partner at Pollen Street, said,
“UB is a high-quality business with a strong foundation, longstanding customer relationships, and a modern platform delivering tangible transformation outcomes. The business is well positioned for future growth in the next phase of core banking evolution.
We are excited to partner with the management team to support the next phase of the company’s development, invest in AI-led innovation and help customers accelerate their modernization journeys.”
After completion, Universal Banking will operate as an independent business led by its existing management team.
The acquisition is subject to customary regulatory approvals.
Featured image: Edited by Fintech News Singapore, based on image by viktoryvisuals via Magnific
