UST acquires Bengaluru-based banking solutions provider

US-based digital transformation firm UST has acquired Modus Information Systems to strengthen its position in the financial sector. Headquartered in Bengaluru, Modus is a core banking implementation firm that services major banks in India and the Global South. The financial details of this deal have not been disclosed.

UST notes that with Modus in its fold, it will be able to meet the growing demand for digital transformation and scalable banking solutions. Further, it will also enhance UST’s banking-as-a-service utility offering BanktrUST, strengthening its global financial services practice.

Modus has a workforce of 340 professionals, who bring expertise in implementing and supporting core banking solutions. Founded in 2003, the company is a Finacle Value Partner,  focusing on Infosys Finacle digital banking suite implementations and various other IT services. By combining UST’s AI and platform engineering strengths with Modus’s domain expertise, the company will deliver differentiated value to banking clients worldwide, the former said in a statement.

“By becoming part of the UST family, Modus will significantly enhance its ability to deliver end-to-end solutions at greater scale, speed, and depth—particularly in key areas such as application services, domain-centric technology solutions, infosec and cybersecurity, platform and hosting services, and system integration. Together, we will deliver greater innovation, agility, and measurable business outcomes,” said KL Mohan Kumar, Chief Executive Officer, Modus.

Kaushal Tripathi, UST’s chief growth officer, noted that India and the Global South have experienced rapid economic growth over a decade, which is expected to continue; accordingly, the banks in the market have grown in scale and absolute numbers. This, in combination with the region’s expanding and maturing telecom infrastructure, combined with evolving expectations of banking users and regulatory changes, makes a compelling case for banks to invest in core banking technologies and broader digital transformation initiatives. 

“The acquisition of Modus enables UST to holistically address the increased demand that accompanies the growth of the financial industry while maintaining the same high standards for customer experience, efficiency, and regulatory compliance needs,” he added.

This is UST’s second strategic investment in India-based firms in recent weeks. Last month, UST invested in Kaynes Semicon, the semiconductor subsidiary of Kaynes  Technology.This collaboration will see the establishment of a ₹3,300-crore Outsourced Semiconductor Assembly and Test (OSAT) facility in Sanand, Gujarat. The plant is expected to play a critical role in advancing India’s semiconductor ecosystem, which has traditionally depended on imports for chip packaging and testing.