Fino Payments Bank has upgraded its main banking system (called Core Banking System or CBS) to a new platform called Finacle. This is a big step in improving its digital systems. This upgrade makes its digital system stronger and prepares the bank to become a Small Finance Bank in the future. The new system is more advanced, flexible, and ready for future growth. It will help the bank expand its services like savings accounts, loans, and payments.
The upgrade was done step-by-step to avoid problems. Because of this, the bank handled slightly fewer transactions in the last quarter (Q4 FY26) to make sure everything worked smoothly and data stayed safe. Even though the process was complex, it was completed on time.
Ketan Merchant, Interim CEO, said that the bank has spent over ₹200 crore to upgrade its technology for the future. This new system will help the bank grow easily in areas like deposits, loans, and payments. It will also help the bank launch new products faster and get ready to become a Small Finance Bank.
Vinod Kumar, Chief Information Officer, explained that the new Finacle system has greatly improved the bank’s technology. It can now handle more transactions smoothly, is more reliable, and helps the bank introduce services faster. This includes services like UPI, savings accounts (CASA), merchant services, and future loan products. Overall, it makes the bank’s digital system more connected and efficient.
In the first 9 months of the financial year 2026, the bank handled transactions worth ₹3.60 lakh crore, which is about 8% higher than last year. More than half (55%) of these transactions were done digitally. Because of its strong performance and improvements, it has become the first Payments Bank to get initial approval from RBI to convert into a Small Finance Bank.
