Fino Payments Bank Completes Finacle CBS Migration, Invests ₹200 Crore
Fino Payments Bank invested over ₹200 crore in migrating its Core Banking System to Finacle. This digital transformation aims to enhance performance, agility, and support the transition to a Small Finance Bank. The migration was completed within the anticipated timeline during Q4 FY26.
The successful migration to a new core banking system is a major technological upgrade that will impact the bank's operational efficiency, product development, and strategic direction, particularly its planned transition to a Small Finance Bank.
The migration to a new core banking system is a strategic investment that enhances the bank's technological capabilities, scalability, and readiness for future growth, including its transition to a Small Finance Bank.
Fino Payments Bank Limited has successfully migrated its Core Banking System (CBS) to Finacle, a significant milestone in its digital transformation. This migration establishes a scalable, modular, and future-ready technology platform to support the Bank's future growth and its transition to a Small Finance Bank (SFB).
The migration involved a temporary moderation in business volumes during Q4 FY26 to ensure system stability and data integrity, and was completed within the anticipated timeline.
Ketan Merchant, Interim CEO, stated that this represents a strategic investment of over ₹200 crore in building a robust digital foundation. The new modular architecture is expected to facilitate efficient growth across liabilities, lending, and payments, and accelerate product launches, thereby strengthening readiness for the SFB journey.
Vinod Kumar, Chief Information Officer, highlighted that the Finacle CBS enhances transaction throughput, system resilience, and shortens time-to-market for services like UPI, CASA transactions, merchant portal solutions, and upcoming lending platforms. The upgraded architecture features a decoupled, modular framework and is supported by the Bank’s ‘Hollow the Core’ (HTC) initiative to improve performance and reduce failure rates.
This upgrade also deepens the Bank’s digital ecosystem, enabling better integration across merchant platforms, expanded digital capabilities, and support for new offerings such as virtual cards and the National Common Mobility Card (NCMC). The Finacle license will also be extended to the upcoming Loan Management System (LMS).
With these enhancements, Fino Payments Bank aims to accelerate financial inclusion, strengthen customer engagement, and deliver sustained long-term value, inching steadily towards its SFB transition. The bank received ‘In-principle’ approval from RBI to convert into an SFB on December 5, 2025.
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