Case Study

How UST Modus delivered a Finacle core banking transformation to drive performance, compliance, and zero downtime for Fino Payments Bank

UST Modus enabled Fino Payments Bank to eliminate downtime, scale transaction processing, achieve nearly 100% data accuracy, and complete migration 4x faster with zero customer loss.

Style

Post-info

OUR CLIENT

A leading payments bank scaling financial access through a merchant-led model

Fino Payments Bank is a licensed payments bank headquartered in Navi Mumbai, India, with more than 3,500 employees and operations across 24 states and Union Territories. The bank delivers digital and merchant-led banking services through a network of more than 2 million merchants, enabling financial access in rural and semi-urban regions.

The bank has built one of the largest merchant networks in India, onboarding approximately 150,000–200,000 new merchants annually to support sustained transaction growth. Its business model is driven by high-volume transactions, digital banking services, and Aadhaar Enabled Payment Services (AEPS), where it is a market leader.

THE CHALLENGE

Scaling a high-volume payments bank without risking compliance, uptime, or customer trust

As Fino Payments Bank expanded its merchant-led model, core system limitations began to pose direct business risks to revenue continuity, regulatory exposure, and customer trust.

Limited data access delayed regulatory response and risk management: Dependence on the legacy FIS system restricted real-time visibility into transactions, slowing regulatory reporting, fraud monitoring, and operational response.
Compliance failures exposed the bank to financial penalties: Inconsistent enforcement of RBI balance limits led to 20+ breaches and approximately ₹1 crore in penalties, increasing regulatory scrutiny and heightened reputational risk.
Transaction latency reduced success rates in real-time payments: Slower processing times led to transaction failures during peak volumes, directly impacting customer experience and revenue flows.
Scheduled downtime disrupted daily banking operations: Approximately 3 hours of EOD (End of the day)/BOD (Beginning of the day) downtime halted transactions, limiting service availability for a high-frequency merchant ecosystem.
Infrastructure constraints limited growth and transaction scale: The system could not support increasing transaction volumes, constraining expansion of the merchant network.
Vendor dependency reduced operational control and speed: Heavy dependence on the vendor delayed issue resolution, restricted data access, and slowed change implementation.
Service instability increased the risk of customer attrition: frequent failures and delays eroded trust and increased the likelihood that customers would shift to competitors.

THE TRANSFORMATION

Finacle-led core banking redesign to improve control, throughput, and continuous availability

UST Modus restructured Fino Payments Bank’s core banking operations to eliminate compliance risk, improve transaction reliability, and enable uninterrupted high-volume processing.

Established real-time data access and reporting control: Enabled direct transaction visibility, accelerating compliance reporting and operational decision-making.
Redesigned core system for high-volume transaction processing: Implemented Finacle CBS with API-led integration aligned to existing business flows, removing throughput bottlenecks and enabling scale. Executed 85–90% customization to preserve existing operational workflows while delivering a robust, scalable solution aligned to business expectations.
Executed accelerated, low-risk migration: Completed migration in 12 hours vs planned 48, minimizing disruption while maintaining data integrity and customer continuity.
Embedded compliance controls into core operations: Built 30+ automated validations to enforce RBI limits in real time, eliminating manual gaps and reducing compliance risk.
Eliminated downtime through process reengineering: Redesigned EOD/BOD processes to support continuous operations without transaction interruption.
Enhanced system performance and monitoring: Improved system performance and monitoring by increasing processing capacity, enabling real-time monitoring, and reducing vendor dependency.

THE IMPACT

Improved transaction reliability, compliance control, and operational continuity at scale

Zero-downtime operations enabled continuous transaction processing: Eliminated ~3-hour daily outages, ensuring uninterrupted service across all channels.
3–4x increase in transaction processing capacity: Scaled from ~700–800 TPS (Transactions per second) to 2,700 TPS, supporting high-volume merchant growth.
Faster regulatory reporting and operational response: Real-time data access reduced reporting timelines by 10+ hours, improving compliance readiness.
Stronger data accuracy and decision confidence: Improved data accuracy from 50–60% to nearly 100%.
Eliminated compliance breaches and financial penalties: Automated controls ensured consistent adherence to RBI requirements, avoiding further penalties.
Reduced transaction failures and improved customer experience: Faster processing and higher throughput improved success rates in real-time payment scenarios.
Accelerated, low-risk migration execution: Delivered migration 4x faster with stable post-go-live operations, minimizing business disruption.

Looking to enhance performance while building greater operational resilience? Explore how similar outcomes can be achieved within your ecosystem.