Best Core Banking Software Companies 2025 [Comprehensive Guide]

Competition in the banking industry is intensifying. Next-generation banks using core banking platforms and software are winning market share by targeting lucrative niches in the value chain, forcing incumbent banks to review their legacy infrastructure. Additionally, the rise of digital banks is enhancing innovation and meeting the challenges of changing demand by achieving automation, scalability, and operational efficiency.

The good news is that there is a lot of core banking software to help banks modernize quickly and efficiently. The global core banking software market is expected to grow from $12.51 billion in 2022 to $40.67 billion by 2029, at a CAGR of 18.3% in the forecast period, according to the research. Consequently, more core banking providers are working on their products. These banking software solutions companies choose various models of software delivery. Some of them work on a subscription model, while others provide white-label on-premise products.

Core banking definition and overview

What is core banking?

A core banking system is a centralized software solution that enables financial institutions to manage and automate their banking operations, providing a seamless and efficient customer experience. Core banking systems are designed to integrate all banking services, including account management, transaction processing, payment processing, and risk management, into a single platform. This allows financial institutions to streamline their operations, reduce costs, and improve customer satisfaction.

In traditional banking systems, core banking was typically handled by a mainframe computer or central server that stored customer account information and processed transactions. However, with the advent of digital technologies, core banking has evolved to include online and mobile banking services.

Creating a new digital bank requires a modern core banking solution that emphasizes flexibility and speed in banking infrastructure. This approach enables banks to achieve growth and capitalize on new opportunities.

Core banking systems can be deployed on-premises or in the cloud and can be customized to meet the specific needs of financial institutions. By integrating these essential banking services, core banking systems enhance operational efficiency and provide a robust foundation for modern banking operations.

What’s the best core banking software in the world?

Core banking software is the most crucial part of every bank. Banking software is the engine behind the creation and management of accounts, balances, transactions, journal entries, along with the storage of client data, receipts, and other reporting tools.

Good software relies ona composable architecture connected by APIs that allow decoupling dof istribution channels, products, and client data. This particularly agile architecture enables them to make quick changes in architecture while providing a continuous digital customer experience.

Modern core banking software also plays a vital role in updating legacy infrastructure. By modernizing these older systems, banks can achieve growth and leverage new opportunities in the banking sector, ensuring they stay competitive in a rapidly evolving market.

Advanced data analytics is a critical component of modern core banking software, enhancing return on investment (ROI) and ensuring customer satisfaction by improving operational efficiency and service quality.

Core banking software for the digital age

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Onboarding, payments processing, card issuing, and KYC services have to be integrated into the core banking software. Some core banking system providers offer integration with these tools’ vendors or develop their own products that you can integrate into your neobank software solutions. However, it is better not to rely on one vendor, but to prioritise digital retail banking solutions that work on balanced, ready-for-integration products, that do not limit you with features and functions you will integrate into it.

Developing a core banking system in-house is a complicated and time-consuming process that can overwhelm teams and delay product launches. As such, very few banks have their own banking platforms.

Revolut, N26, Tandem, and O2 Banking have outsourced their core banking software from FinTech providers. New cloud-based platforms with pre-integrated key features help to assemble best-in-class products and launch them at a much faster pace and lower capital expenditure.

We have prepared the Top Core Banking Software list to talk about the best products in the world. We did not want to create a core banking system ranking, as it is hard to find metrics for estimation. At the same time, we analysed the features of prime banking software solutions companies that operate now and highlighted details about their services, product features, and expertise.

Read our latest article to learn how to develop a digital-only banking app.

Core Banking Software Features

Core banking software features a range of functionalities that enable banks to manage their daily operations efficiently. These features are designed to streamline processes, enhance customer experiences, and ensure regulatory compliance. Here are some of the key features of core banking software:

Account Management: Core banking software allows banks to manage customer accounts seamlessly. This includes account opening, maintenance, and closure, ensuring that all account-related activities are handled efficiently and accurately.
Transaction Processing: Efficient transaction processing is at the heart of any core banking system. This feature enables banks to handle deposits, withdrawals, and transfers swiftly, ensuring that daily banking transactions are processed without delays.
Credit Processing: Managing credit applications, approvals, and disbursements is crucial for any financial institution. Core banking software streamlines credit processing, making it easier for banks to offer loans and credit products to their customers.
Online Banking: In today’s digital age, online banking is a must-have feature. Core banking software provides robust online banking facilities, allowing customers to access their accounts and conduct transactions from anywhere, at any time.
Digital Banking: Beyond online banking, core banking software supports a range of digital banking services, including mobile banking and digital wallets. This ensures that customers can manage their finances on the go, enhancing their overall banking experience.
General Ledger Systems: Accurate financial data management is essential for any bank. Core banking software includes comprehensive general ledger systems, enabling banks to manage their financial data effectively and generate detailed financial reports.
Operational Efficiency: One of the primary goals of core banking software is to improve operational efficiency. By automating routine tasks and streamlining processes, banks can reduce the time and cost associated with their operations.
Scalability: As banks grow, their core banking system must be able to scale with them. Core banking software is designed to be scalable, ensuring that banks can expand their operations without worrying about system limitations.
Security: Protecting customer data is paramount. Core banking software includes advanced security features such as encryption, firewalls, and access controls to safeguard sensitive information and prevent unauthorized access.
Compliance: Regulatory compliance is a critical aspect of banking operations. Core banking software is designed to meet all relevant laws and regulations, ensuring that banks remain compliant and avoid potential legal issues.

By incorporating these features, core banking software provides a robust foundation for modern banking operations, enabling financial institutions to deliver superior services to their customers while maintaining operational efficiency and security.

SDK.finance

SDK.finance is a prominent FinTech software provider established in 2013 and based in Vilnius, Lithuania. With over 15 years of experience in the industry, the company offers a highly secure and mobile-ready API-driven Platform designed for payment products and FinTech companies.

The solution is built to support a wide range of financial services, including digital wallets, money transfers, currency exchange, payment acceptance, neobanking, and comprehensive KYC and AML compliance features. SDK.finance Platform stands out for its scalability and cost-effectiveness, accommodating transaction volumes from thousands to billions per month.

The Platform provides out-of-the-box integrations with trusted partners and back-office tools that enhance operational efficiency, making it easier for businesses to manage clients and transactions. With a focus on innovation and customer support, SDK.finance provides a robust foundation for businesses aiming to lead in the FinTech sector.

Any payment-related products can be built on the SDK.finance Platform:

Neobank: Build neo-banking products and launch them with ready-made neobank software at a much lower cost.

E-wallet: A ready-to-go digital wallet Platform solution for EMIs and PIs (including AISPs and PISPs). Create a product like Paypal®, Alipay®, or PayTM®.

Money remittance: Help migrants transfer money abroad as Transferwise® does. Currency exchange is a part of the product.

Payment acceptance: Cloud payment acceptance software Platform for MSPs and PSPs. Start growing your revenue by providing a complete stack of online and offline payment acceptance services for merchants.

Watch SDK.finance Platform demo video to explore how to maximize your revenue with our FinTech solution: