Fino Payments Bank has successfully migrated its Core Banking System (CBS) to Finacle, marking a significant milestone in its digital transformation journey. The bank has invested approximately ₹200 crore in this scalable and future-ready core banking system, which is poised to enhance performance and agility as part of its transition roadmap to becoming a Small Finance Bank (SFB).
The migration was executed through a phased approach, allowing for a temporary moderation in business volumes during the fourth quarter of FY26 to ensure system stability and data integrity. Despite the scale and complexity of the transition, it was completed within the anticipated timeline, showcasing strong execution and operational discipline.
Ketan Merchant, Interim CEO of Fino Payments Bank, commented on the development, stating that the migration represents a strategic investment in building a robust digital foundation for the future. The new modular architecture is designed to support efficient growth across liabilities, lending, and payments, significantly accelerating product launches and strengthening the bank’s readiness for its SFB journey.
Vinod Kumar, Chief Information Officer, highlighted the technological advancements brought by Finacle CBS, noting its agile and scalable design enhances transaction throughput, improves system resilience, and reduces time-to-market across various platforms, including UPI, CASA transactions, and merchant portal solutions. This creates a more integrated digital ecosystem for the bank.
The upgraded architecture introduces a decoupled, modular framework that allows for independent scaling of business lines while improving processing efficiency. The bank’s ‘Hollow the Core’ initiative further supports this by offloading high-frequency transactions from the core system, enhancing performance and reducing failure rates.
Additionally, the migration deepens the bank’s digital ecosystem, enabling tighter integration across merchant platforms and expanded digital capabilities. It supports new offerings such as virtual cards and the National Common Mobility Card (NCMC). The same Finacle license will be extended to the bank’s upcoming Loan Management System (LMS), ensuring value creation and alignment with its SFB roadmap.
With enhanced scalability, faster innovation cycles, and a resilient digital backbone, Fino Payments Bank is well-positioned to accelerate financial inclusion, strengthen customer engagement, and deliver sustained long-term value to all stakeholders as it steadily moves towards becoming a Small Finance Bank.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).