KAREN JOY BACUDO

Finance Editor

Pollen Street Capital will acquire Universal Banking from Finastra, turning the core banking software business into a standalone company.

Universal Banking provides core banking systems for account and deposit management, payments, lending and treasury operations. It serves more than 150 customers in over 100 countries, including global and regional banks, digital banks, Islamic banks and building societies.

The sale marks a portfolio shift for Finastra, which will focus more closely on payments and lending after the transaction. Universal Banking will continue under its existing management team once the acquisition closes, subject to regulatory approvals.

At the centre of the business is Essence, the company’s core banking platform. Finastra describes it as a cloud-based system that helps banks replace or work alongside older infrastructure as they modernise their technology over time.

The transaction underscores continued private equity interest in financial software assets that sit close to banks’ day-to-day operations. Core banking platforms are deeply embedded in lenders’ systems, making them critical for institutions seeking to modernise technology without disrupting core services.

Pollen Street said its investment will support Universal Banking as an independent business. The funding is intended to back product development, including generative artificial intelligence and data capabilities, while strengthening customer delivery.

That focus comes as banks face pressure to simplify operations and improve digital services while maintaining continuity in essential systems. Many institutions have moved away from large-scale replacement projects in favour of phased modernisation, allowing new and legacy systems to run together.

Universal Banking has positioned itself around that model. Its products are designed to let banks modernise progressively rather than through a single overhaul, an approach that has gained traction as lenders balance technology investment against operational risk and regulatory scrutiny.

For Pollen Street, the acquisition fits a broader strategy of investing in specialist financial services and technology companies. The private capital manager focuses on businesses with established market positions and recurring customer relationships across the financial and business services sectors.

Pollen Street manages more than €8 billion in assets across private equity and credit strategies. Its investor base includes pension funds, insurers, sovereign wealth funds, endowments, asset managers, banks and family offices.

Chris Walters, Chief Executive Officer of Finastra, outlined the rationale for the sale and the group’s next steps.

“Universal Banking is a strong business with talented people, proven products and deep customer relationships. Under Pollen Street Capital, it will have the dedicated focus and investment to build on that strength. For Finastra, this allows us to sharpen our focus on payments and lending-areas where we see significant opportunities to grow and deliver even greater value for our customers,” said Chris Walters, Chief Executive Officer of Finastra.

Anastasia Kovaleva, Partner at Pollen Street, set out the investor’s view of the business and its prospects as a standalone company.

“UB is a high-quality business with a strong foundation, longstanding customer relationships and a modern platform delivering tangible transformation outcomes. The business is well positioned for future growth in the next phase of core banking evolution. 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 modernisation journeys,” said Anastasia Kovaleva, Partner at Pollen Street.

Advisers on the transaction included Arma Partners for Finastra and Vista Equity Partners, with Kirkland & Ellis as legal adviser. Nomura advised Pollen Street, and Clifford Chance acted as legal adviser.

The county, which has received repeated calls for action on its highways, including from the Prime Minister, sees more than 1,000 emergency pothole reports a week.

According to the county council, there has been a major rise in repairs, with the number of crews increased from seven to 25 to tackle its pothole backlog

Since January 2026, contractor M Group has repaired more than 33,000 highway defects – compared to 37,042 potholes filled in the whole of 2024- 25.

This rise in repairs has also come with rising abuse towards the people carrying out the work.

Richard Lovewell, M Group business director, said: “It just makes me really, really sad.

“I think what makes me even sadder is the guys expect it now, and they just think it’s part of the job, and nobody should come to work to be spat at and abused.”

Richard Lovewell at Wildmere Road pothole filling trial (Image: Isabella Harris/NQ)

He explained: “These guys work very, very hard in all weathers and all environments.

“We appreciate that if we’re out with traffic management it can cause some inconvenience, but there’s people getting hit, there’s people getting sworn at, and we’re doing everything we possibly can.

“We’ve brought in body-worn video, we use static CCTV, anything that we can do.”

He added: “We recently had a high-speed police chase come through one of our sites.

“It’s one of the major hazards.

“It’s incursions – we obviously shut roads off, people don’t take any notice of that, and if that’s their shortcut, that’s their shortcut.

“What they’ve got to realise is that they’re putting lives in danger by doing that.

“Let’s be honest, if you worked in a bank, you wouldn’t expect people to line up and swear at you all day.”

Mr Lovewell wants to address “public perception” about pothole roadworks, saying “if we could, we’d resurface every road in Oxfordshire – obviously, as a contractor, we get given certain budgets”.

He added: “If a pothole fails for any reason, from a workmanship issue or anything, we repair that free of charge, and that’s our risk.

“I don’t think people know that.”

He also highlighted some of the better experiences the workers have while out on the job – young children are often fascinated by the roadworks.

Mr Lovewell said members of his work gangs “take the time to chat to the kids, tell them what they’re doing”.

He said kids especially like the ‘Dragon Patcher’ – a “huge, big, fire-breathing pothole machine”.

KAREN JOY BACUDO

Finance Editor

Evolution Funding Group has rebranded as Centeca, reflecting its expansion into a broader automotive commerce and fintech platform.

The business now facilitates more than GBP £6.5 billion in annual advances across finance, digital retail and compliance. Over more than two decades, it has grown from its origins in automotive finance through technology investment, in-house development and acquisitions.

Centeca works with more than 5,500 transacting retailers across the UK. The group also supports four original equipment manufacturer finance journeys, connects with more than 35 lenders and maintains more than 20 technology and data integration partnerships in the automotive sector.

The rebrand comes as car retailing shifts further towards digital processes and connected systems. Retailers, lenders and service providers are under pressure to simplify customer journeys that often span finance, vehicle sales and compliance requirements.

Platform strategy

At the centre of the group’s strategy is a platform model designed to connect parts of the automotive market that have often operated separately. Its system brings together specialist brands, software and data gathered from transaction history and retailer activity.

Built over more than 20 years, that data gives Centeca a broad view of activity across automotive commerce. It uses the information in areas such as decisioning, automation, lender connectivity and internal platform intelligence.

Growth has also come through acquisitions and brand development. The group includes Click Dealer, which provides dealer management systems, websites, digital retail tools and automotive marketing technology; Motion Finance, a motor finance brokerage; Creditas Financial Solutions, which provides appointed representative and compliance support services; and Automotive Compliance, which focuses on regulatory and compliance services.

Its Evolution Funding brand remains focused on automotive finance and lender connectivity. The wider group identity is intended to better reflect the range of services now within the business.

Retail links

One example of the company’s integrated approach is Dealer in a Box, which combines retail, finance and compliance services. The proposition recently received Credit Strategy’s Innovation Award 2026, according to the company.

Centeca is headquartered in Chesterfield, Derbyshire, and employs about 600 people across the UK. It describes itself as one of the country’s largest automotive finance and technology providers.

The group is backed by LDC, the private equity arm of Lloyds Banking Group, and Carlyle. The rebrand follows a period of sustained growth supported by those investors.

For customers, lending partners and other commercial partners, the name change will not alter existing services, relationships or points of contact.

Lee Streets outlined the rationale for the change.

“This is more than a change of name. It marks an important milestone for the business and recognises how far we have come.

“We have built a strong group of specialist brands, developed significant technology and data capabilities, and created foundations that position us for continued growth. Centeca gives us a group identity that better captures who we are today and where we are heading.

“The future of automotive commerce will be shaped by how well providers connect people, systems and data. Our focus is on creating the infrastructure that enables businesses to operate more effectively within an increasingly digital market,” said Streets, Chief Executive Officer, Centeca.

Duncan Josey, Chief Strategy Officer, Centeca, said the change reflects wider shifts in the structure of automotive retail.

“For many years, automotive retail has been built around disconnected systems and fragmented processes. Finance, retail technology and compliance have operated independently of one another, creating complexity for retailers and friction for consumers.

“As the market continues to evolve, those boundaries are becoming increasingly blurred. The name Evolution Funding Group has served us incredibly well, but it no longer reflects the breadth of our proposition. Centeca better represents our role within the wider automotive ecosystem and the unique combination of technology, data and specialist expertise we are bringing together through our platform strategy,” said Josey.