Flagstar picks Finxact for core banking upgrade

By Milan Rojan

Flagstar Bank has selected Fiserv’s Finxact platform as the foundation of its core banking modernisation strategy, as the US regional bank has moved to replace legacy technology with a cloud-native infrastructure.

Fiserv has announced that Finxact will serve as Flagstar’s next-generation system of record and transaction processing engine. The bank has planned to transition to a single consolidated core through a phased conversion programme.

The selection has formed a key part of Flagstar’s wider Flagstar S2 Platform, a technology transformation initiative focused on creating a unified technology foundation across the bank.

Flagstar has said the implementation will support its efforts to provide real-time and digital-first banking services while giving the institution greater flexibility to develop and launch products. The bank has also highlighted the platform’s role in enabling a more streamlined technology environment.

Christopher Higgins, Chief Information & Operations Officer at Flagstar Bank, said: “Choosing Finxact wasn’t just a technical decision, it was a pivotal moment for us.

Finxact has been designed as an open, cloud-native and API-first core banking platform. Fiserv has said its real-time transaction processing can provide financial institutions with continuous access to data while reducing reliance on traditional end-of-day batch reconciliation.

The platform has also been positioned to support incremental modernisation, allowing banks to integrate new capabilities and develop products and services without requiring a complete replacement of their technology infrastructure at once.

Fiserv has said financial institutions have been reassessing their technology foundations to improve agility and respond more quickly to changing customer expectations. Flagstar’s adoption of Finxact has represented a major step in that broader technology transition, with the phased rollout expected to support the bank’s move towards a consolidated core system.