The acquisition of Finastra’s cash management suite gives Tech Mahindra ownership of software for liquidity, cash pooling and virtual accounts, while preserving support for existing customers.
Tech Mahindra has bought Finastra’s Cash Management product suite in a deal that broadens the Indian technology group’s banking software offer and gives it direct ownership of a set of treasury tools used by lenders and corporate clients. The acquisition covers Fusion Cash Management, Fusion Virtual Accounts and Fusion Liquidity Management, along with related intellectual property and capabilities tied to cash pooling, payables, receivables, reporting, forecasting and virtual accounts.
The move comes as banks and large companies are under growing pressure to track cash positions in real time, improve liquidity management and connect treasury operations more closely to digital channels. In practical terms, that means demand is rising for systems that can automate routine cash processes, support regulatory compliance and plug into application programming interfaces, or APIs, which allow different software systems to talk to one another.
Tech Mahindra said the purchase strengthens its banking, financial services and insurance portfolio and creates a base for further investment in the products. Anil Venuturupalli, senior vice-president of the banking group and chief product officer for financial services, said the deal would help the company serve institutions that need more intelligent and connected cash management systems.
For existing users of Finastra’s platform, the company says continuity is central to the transaction. The acquisition includes the transfer of product engineering and customer success staff, and Tech Mahindra says it will continue support for current customers while building on its existing relationship with Finastra through its centre of excellence. The company also sees room to extend the portfolio further into transaction banking areas such as supply chain finance and cash-flow forecasting.
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