Pollen Street to Acquire Finastra’s Universal Banking Core Banking Software for AI-Driven Growth

Pollen Street will acquire Finastra’s Universal Banking (UB) business to operate it as a standalone entity, according to a June 19, 2026, press release. The asset manager plans to invest in UB’s AI and data capabilities, while Finastra shifts its corporate focus toward payments and lending.

The transaction remains subject to customary regulatory approvals, the companies said in the release. Once the deal closes, UB will be led by its current management team.

Pollen Street, established in 2013, manages assets totaling over 8 billion euros. The firm intends to provide investment to UB to accelerate product innovation, expand capabilities and strengthen customer delivery.

How does Universal Banking operate?

UB provides core banking technology to more than 150 customers across more than 100 countries. Its client base includes digital banks, Islamic banks, building societies and both regional and global financial institutions, according to the press release.

The business utilizes a cloud-first, open banking platform called Essence. Finastra stated the platform is designed to help financial institutions modernize legacy systems.

Why is Finastra selling its core banking business?

Finastra CEO Chris Walters stated the sale allows the company to sharpen our focus on payments and lending, describing those sectors as areas with significant growth opportunities to deliver value for customers.

This divestment is part of a broader trend of asset sales under Walters, who joined Finastra as CEO in January 2025. In May 2025, Finastra announced the sale of its treasury and capital management business, TCM. More recently, on June 4, 2026, the company announced the sale of its U.S. mid-market banking business.

These three moves indicate a rapid narrowing of Finastra’s operational scope since Walters took the helm roughly 17 months ago.

What will Pollen Street invest in?

Pollen Street’s investment will specifically target generative artificial intelligence and data capabilities, the release said.

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

Kovaleva noted that UB possesses a modern platform and longstanding customer relationships, which she said positions the company for growth in the next phase of core banking.

Walters added that while UB is a strong business, it will now have the dedicated focus and investment to build on that strength under Pollen Street’s ownership.