Pollen Street Capital announced that it will acquire Universal Banking, Finastra’s global core banking software business.
Universal Banking provides core banking technology for retail, commercial, and corporate banks. Its platform supports account and deposit management, payments, lending, and treasury operations.
The business serves more than 150 customers worldwide, including global and regional financial institutions, digital banks, Islamic banks, and building societies across more than 100 countries.
At the center of Universal Banking is Essence, a next-generation cloud-first open banking platform designed to help financial institutions modernize legacy systems, accelerate innovation, and improve operational efficiency.
Pollen Street said demand for core banking modernization continues to grow as financial institutions seek to simplify operations, improve customer experiences, and prepare for the next generation of digital banking.
Universal Banking helps banks modernize over time by enabling new and existing systems to coexist while supporting progressive transformation of critical operations.
Pollen Street’s backing will support Universal Banking as it becomes a standalone business. The investment is expected to help accelerate product innovation, including GenAI and data capabilities, strengthen customer delivery, and expand capabilities for customers in a rapidly evolving market.
Following completion of the transaction, Universal Banking will operate as an independent business led by its existing management team.
The transaction remains subject to customary regulatory approvals. Financial terms were not disclosed.
Support: Arma Partners served as financial advisor to Finastra and Vista Equity Partners, while Kirkland & Ellis served as legal advisor. Nomura served as financial advisor to Pollen Street, and Clifford Chance served as legal advisor.
KEY QUOTES:
“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.”
Chris Walters, Chief Executive Officer of Finastra
“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.”
Anastasia Kovaleva, Partner at Pollen Street
