Finastra Sells Core Banking Business to Focus on Payments and Lending

Private capital asset manager Pollen Street plans to acquire Finastra’s global core banking software business, Universal Banking (UB), and support UB as it becomes a standalone business.

Pollen Street will provide investment to UB to help the company accelerate product innovation, strengthen customer delivery and expand capabilities, the companies said in a Friday (June 19) press release.

The transaction is subject to customary regulatory approvals, according to the release.

Following the transaction, UB will operate as an independent business and will be led by its existing management team, per the release.

UB’s core banking technology supports more than 150 customers across more than 100 countries, including global and regional financial institutions, digital banks, Islamic banks and building societies. Its cloud-first, open banking platform, Essence, helps financial institutions modernize legacy systems, according to the release.

The product innovation that Pollen Street’s investment will support includes generative artificial intelligence and data capabilities, the release said.

Finastra CEO Chris Walters said in the release that UB is a strong business and that under Pollen Street, it will have “the dedicated focus and investment to build on that strength.”

Pollen Street was established in 2013, has built deep capability across financial and business sectors, and has assets under management (AUM) totaling over 8 billion euros, per the release.

Anastasia Kovaleva, partner at Pollen Street, said in the release that UB has a strong foundation, longstanding customer relationships, a modern platform and a good position for growth in the next phase of core banking.

“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,” Kovaleva said.

Walters said in the release that in addition to giving UB dedicated focus and investment, the transaction will enable Finastra to “sharpen our focus on payments and lending — areas where we see significant opportunities to grow and deliver even greater value for our customers.”

PYMNTS reported in January 2025 that Walters joined Finastra as CEO that month after serving at financial services firms like Avantax, where he orchestrated the company’s sale.

Finastra announced in May 2025 that it was selling its treasury and capital management business, TCM, and announced June 4 that it was selling its U.S. mid-market banking business.