Pollen Street Capital has announced the acquisition of Universal Banking (UB), the global core banking software division of Finastra.
The Universal Banking business provides mission-critical technology for account management, deposits, payments, lending, and treasury. It currently serves over 150 customers across more than 100 countries, ranging from global tier-1 institutions and digital banks to building societies and Islamic banks.
At the core of the acquisition is Essence, UB’s cloud-first, open banking platform, which has gained significant market traction as banks seek to modernize legacy systems and improve operational efficiency.
The deal comes at a time of high demand for core banking transformation. UB specializes in helping banks navigate these transitions by allowing modern and legacy systems to coexist, enabling a progressive approach to modernization rather than "big bang" deployments.
With the backing of Pollen Street, UB will operate as a standalone company. The investment will be used to accelerate product innovation—specifically in GenAI and data capabilities—and strengthen customer delivery.
Chris Walters, CEO of Finastra, stated that the move allows Finastra to sharpen its focus on its primary growth areas: payments and lending. Meanwhile, Anastasia Kovaleva, Partner at Pollen Street, highlighted UB’s high-quality foundation and potential for AI-led innovation as key drivers for the acquisition.
Following the completion of the transaction, which is subject to regulatory approvals, UB will be led by its existing management team. Arma Partners and Nomura served as financial advisors for Finastra and Pollen Street, respectively.