Pollen Street acquires Finastra’s Universal Banking unit

By Milan Rojan

Private equity firm Pollen Street Capital has agreed to acquire Finastra’s Universal Banking unit, Finastra’s global core banking software business, in a move aimed at accelerating innovation and growth in banking technology.

 Universal Banking provides core banking technology supporting account and deposit management, payments, lending and treasury operations for more than 150 financial institutions across over 100 countries. Its customer base includes retail and commercial banks, digital banks, Islamic banks and building societies.

Chris Walters, Chief Executive Officer of Finastra, 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.”

At the centre of the business is Essence, Universal Banking’s cloud-first and open banking-enabled platform designed to help financial institutions modernise legacy infrastructure, improve operational efficiency and accelerate digital transformation initiatives.

Following completion of the transaction, UB will operate as an independent business under its existing management team. Pollen Street said its investment will support product development, including Generative AI and advanced data capabilities, while enhancing customer delivery and expanding the platform’s functionality.

Anastasia Kovaleva, Partner at Pollen Street Capital, said: “UB is a high-quality business with a strong foundation, longstanding customer relationships, and a modern platform delivering tangible transformation outcomes. 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.”

The transaction aligns with growing demand for core banking modernisation as financial institutions seek to balance innovation with operational continuity. Financial terms were not disclosed.

The acquisition remains subject to customary regulatory approvals. Arma Partners advised Finastra and Vista Equity Partners on the transaction, while Nomura acted as financial adviser to Pollen Street Capital. Legal counsel was provided by Kirkland & Ellis and Clifford Chance.