Pollen Street, a private capital asset management firm, is set to acquire Finastra’s global core banking software division, known as Universal Banking (UB), with plans to support its transition to an independent entity.
The announcement made on June 19 states that Pollen Street aims to inject funds into UB to accelerate innovation in products, enhance customer offerings, and broaden capabilities.
This deal is contingent upon receiving the usual regulatory approvals.
Once finalized, UB will function independently, managed by its current leadership team. The technology that underpins UB’s core banking supports over 150 clients across more than 100 countries, including a variety of financial institutions like digital banks and building societies. The aim is to assist these institutions in modernizing outdated systems.
Investments planned by Pollen Street will drive product innovations, notably in areas such as generative artificial intelligence and data capabilities.
Chris Walters, Finastra’s CEO, remarked that UB is a robust business that will benefit from dedicated investment and focus under Pollen Street’s guidance.
Pollen Street, established in 2013, has developed extensive expertise in finance and business sectors, managing over €8 billion in assets.
Anastasia Kovaleva, a partner at Pollen Street, expressed enthusiasm for UB, highlighting its solid foundation, long-term customer relationships, and a modern platform that positions it well for future growth in core banking.
Kovaleva stated her excitement to partner with the management team to spearhead the company’s next growth phase, invest in AI-driven innovations, and assist customers in their modernization efforts.
This acquisition will also enable Finastra to concentrate more heavily on payments and lending sectors, areas where considerable growth potential exists, according to Walters.
In previous reports from January 2025, it was noted that Walters took on the role of CEO at Finastra after having worked with Avantax, where he led the company’s sale.
In May 2025, Finastra announced the sale of its Treasury and Capital Management (TCM) business, followed by the sale of its U.S. mid-market banking operation on June 4.
