Fino Payments Bank Migrates to Finacle CBS to Boost Capacity for Small Finance Bank Status
Fino Payments Bank Limited announced a major technological milestone on April 15, 2026, successfully completing the migration of its Core Banking System (CBS) to Finacle. This upgrade establishes a scalable, modular, and future-ready technology platform designed to support the Bank's anticipated growth trajectory, including its transition to a Small Finance Bank (SFB).The migration represents a significant strategic investment, valued at over ~ ₹ 200 crore, aimed at building a robust digital foundation for the bank. The transition was executed through a carefully phased approach, though the Bank noted a temporary moderation in business volumes during Q4 FY26 to ensure maximum system stability and data integrity.
Ketan Merchant, Interim CEO, stated that this migration provides a robust digital foundation. He added that the new modular architecture allows for efficient growth across liabilities, lending, and payments, while also accelerating product launches and strengthening the bank's readiness for the SFB journey.
Vinod Kumar, Chief Information Officer, emphasized that Finacle CBS delivers a step change in technological capabilities. He noted that its agile, scalable design enhances transaction throughput, improves system resilience, and shortens the time-to-market across several key areas, including UPI, CASA transactions, merchant portal solutions, and upcoming lending platforms, thus creating a more integrated digital ecosystem.
The upgraded architecture introduces a decoupled, modular framework that facilitates independent scaling of business lines while simultaneously improving overall processing efficiency. This advanced capability is further enhanced by the Bank's 'Hollow the Core' (HTC) initiative, which is designed to offload high-frequency transactions from the core system, improving performance and reducing failure rates.
The migration also deepens the Bank's digital ecosystem, enabling tighter integration across merchant platforms and supporting new offerings such as virtual cards and the National Common Mobility Card (NCMC). Furthermore, the Finacle license will be extended to the Bank's upcoming Loan Management System (LMS), aligning the technology backbone with its SFB roadmap.
Fino Payments Bank, which is a subsidiary of Fino Paytech Ltd., is a technology-led, asset-light digital bank serving emerging India. The Bank is backed by marquee investors including ICICI Group, BPCL, Blackstone, LIC, and IFC.
As of 9M'26, the Bank processed ₹ 3.6 lakh crore in transactions, marking an 8% year over year increase. The transactions saw a strong digital throughput of 55%. Notably, Fino Payments Bank received 'In-principle' approval from the Reserve Bank of India (RBI) to convert into a Small Finance Bank on December 5, 2025, making it the first Payments Bank to achieve this status.
FINOPB Stock Price Movement
Today, Fino Payments Bank Limited shares edged higher, closing at ₹134.81 after gaining 1.39% on increased market participation. The stock saw notable trading activity in the session, with 362,168 shares transacted.Source:
Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
The information provided is for general informational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any securities. Readers are advised to rely on their own assessment and judgment and consult appropriate financial advisers, if required, before taking any investment-related decisions.
Any views, opinions, or statements expressed, where applicable, are those of the respective analysts or experts and do not reflect the views of this website. The website has no association with such viewpoints and does not assume any responsibility for them.