Choosing the right core banking system software provider is critical for all types of financial institutions – from small FinTechs to large financial institutions. Because it helps stay competitive, compliant and customer centric.
Core banking software forms the backbone of banking operations, enabling everything from basic transactions to complex financial services. Henceforth as an AML/CFT (Anti-Money Laundering/Combating Financing of Terrorism) software provider, we understand the importance of integrating robust, reliable, and secure core banking solutions to protect financial operations from illicit activity.
In this blog post, we will explore some of the leading core banking software providers and those with whom we have partnerships. We have tried to shortlist those in whom we have confidence and who we, as regulatory insiders, believe are transforming the banking industry.
Whether you’re looking for a trusted partner to enhance your banking infrastructure, or if you’re looking for the latest innovations in financial technology. This article will help you navigate the options and make informed decisions.
Why core banking software matters
Core banking software is the engine that drives the financial services industry forward.
It supports essential functions such as account management, transaction processing, loan servicing, and customer relationship management.
The right software not only streamlines operations, but also ensures regulatory compliance, enhances the customer experience and provides the scalability to grow with your business.
In particular, core banking solutions typically come in two main forms: on-premises software and platform-based services (often referred to as Software-as-a-Service or SaaS).
Different models
When selecting a core banking software provider, it is important to understand the different deployment models available, as each has different benefits and considerations.
With on-premises solutions, the software is installed and run on the bank’s own servers and infrastructure. Therefore this model gives banks complete control over their systems, including customization, data security and compliance with local regulations. In addition, on-premises software is often favored by large institutions that have the resources to manage and maintain their IT infrastructure. However, it comes with higher upfront costs for hardware and software, as well as ongoing expenses for IT staff and maintenance. In addition, on-premises solutions can be less flexible and slower to update than cloud-based alternatives.
Meanwhile, platform-based solutions are hosted on the provider’s servers and accessed via the cloud. This model significantly reduces the need for extensive in-house IT infrastructure, making it an attractive option for smaller banks and financial institutions looking to minimize capital expenditure.
Besides, SaaS models offer greater flexibility as updates and new features are automatically delivered by the provider, ensuring that the software is always up to date with the latest technological advances and regulatory requirements.
In addition, platform-based solutions can improve scalability, allowing banks to adapt quickly to changing needs without significant additional investment. However, reliance on third-party providers for data security and uptime may be a concern for some institutions, and there may be limitations in terms of customization compared to on-premises systems.
To sum up, the decision between on-premises and platform-based core banking software depends on a number of factors, including the institution’s size, resources, regulatory environment and strategic objectives. And by carefully evaluating these considerations, banks can select a deployment model that best suits their operational needs and long-term vision, ensuring robust and efficient banking operations.
Our top core banking software providers
Choosing the right core banking solution is no easy task. With so many vendors on the market, it is important to ensure that your top choice has the right features.
Therefore to help you find the best solution for your needs, we have compiled a list of the top core banking software providers (listed in no particular order), including our trusted partners and other industry leaders. Each provider has been evaluated on key criteria such as functionality, security, scalability, and innovation.
Tuum
Tuum is a modular, cloud-native, API-first core banking platform that enables any business to quickly deliver seamless, tailored financial services to their customers.
The platform was created to enable banks to replace their legacy systems, reduce their maintenance costs and open up new opportunities to adapt and thrive in the digital world quickly and securely. The company has adopted an intelligent migration approach to help banks move away from their current systems. Using this approach, Tuum customers go live in an average of 7 months. Once live, the Tuum system enables banks to easily launch new products and enter new verticals.
In order to provide you with the best possible experience, Tuum offers you the following benefits:
- Different account types
- Transaction management
- Automatic payment processing
- Customized pricelists
- Debit and credit cards
- Term-deposit feature
- Currency exchange
- Three-step loan management
- Credit contract management
- Loan application and offer generation
Probanx
Probanx is a versatile core banking solution that combines a suite of modules with an agile, modern user interface, allowing financial institutions to choose the functionality and workflows that suit their specific needs.
It is a core banking system tailored to your needs and requirements. With Probanx, you can transform your portals and applications into modern, intuitive digital experiences for more satisfied customers.
In order to provide you with the best possible experience, Probanx offers you the following benefits:
- Customizable to client needs
- Intuitive UI for users
- Integration with other systems
- SEPA Gateway solution for integration with SEPA
- Performance optimization
- Trainings and support
Skaleet
Skaleet is a core banking platform that gives financial institutions the ability to continuously change.
This SaaS core banking platform is designed with a logic of continuous evolution to meet the needs of any financial institution. Cloud-based, modular and 100% API, Skaleet supports your technology while you focus on what matters: your customers.
In order to provide you with the best possible experience, Skaleet offers you the following benefits:
- Large typology of players
- High level of configurability
- Payments module with SEPA & SEPA Inst natively managed
- Card module
- Flexible lending module
- Easy orchestration: complete and centralized view on activity
- Comprehensive account management
- Configurable onboarding process
- Easy integrations with third-parties
Aura Cloud
Aura Cloud is a platform that enables you to launch innovative financial services in weeks, not months, with superior time to value (TTV).
This core banking platform makes you more agile, competitive, and cost-effective. Its SaaS infrastructure requires no IT licenses and minimal IT resources.
In order to provide you with the best possible experience, Aura Cloud offers you the following benefits:
- Flexible loans and credits
- Payments origination instruments
- Current, savings and term deposit account option
- Full-suite card issuing
- Multi-currency accounts
- Consumer credits
Finastra
Finastra is market-leading software for lending, payments, treasury and capital markets, universal banking, and an open innovation platform for banks, fintechs and non-banks to connect and collaborate.
They deliver a consistent, frictionless digital borrower experience for a range of businesses, corporations and consumers, whilst improving customer onboarding, increasing transparency and streamlining back-office operations.
In order to provide you with the best possible experience, Finastra offers you the following benefits:
- Universal banking
- Lending & Corporate banking
- Payments
- Treasury & Capital markets
- Cloud-native
- Investment management
- Banking as a Service
Fimple
Fimple is cloud-native composable core banking platform for financial institutions with the “Financial Function as a Service” principle.
This platform streamlines financial functions, simplifies finance, and makes it affordable to deliver essential financial services such as remittances, FX, loans, and deposits as a natural born cloud fintech.
In order to provide you with the best possible experience, Fimple offers you the following benefits:
- Digital only banking
- Investment banking
- Buy now pay later
- Consumer finance
- Easy API integration
- All-in-one platform
SaaScada
SaaScada is a NextGen data-driven core banking engine founded from the desire to ensure that first-class products are available to all.
Their business grew from a successful venture we pioneered to provide banking services to customers who were underserved by mainstream banks. As a result, we do things differently so that the innovators who choose us can create products suited to a wide range of customers.
In order to provide you with the best possible experience, SaaScada offers you the following benefits:
- Universal banking for established banks
- Suitable for challenger banks & new entrants
- Wealth management
- Private banking
- Embedded fintech
- Easy API
Thought Machine
Thought Machine is a modern core banking software provider and payments platform in the cloud. It is cloud agnostic, giving banks complete flexibility to choose the hosting option and provider that best suits their needs.
With Thought Machine, banks can run any product they want, allowing them to control and shape their strategy as they see fit. It can replicate a bank’s existing back book of products and create entirely new ones.
In order to provide you with the best possible experience, Thought Machine offers you the following benefits:
- Universal product engine
- Current savings and accounts
- Credit cards
- Loans
- Mortgages
- Products library
- Possibility to build products
- Real-time ledger
Pismo
Pismo is core banking that enables fast innovation, rapid scale and reduce operational costs on a 100% cloud-native SaaS platform – whether retail, digital or corporate.
It’s a comprehensive, feature-rich and exceptionally scalable solution already used by major financial institutions around the world.
In order to provide you with the best possible experience, Pismo offers you the following benefits:
- Digital lending
- Card issuing
- Digital wallets
- Sales management
- 100% cloud-based infrastructure
- Security-first approach
- API library
- Migration roadmaps
If you are also interested in how to choose a Know Your Customer (KYC) and Know Your Business (KYB) software provider, you can also read our other blog post here.
FAQs
What is banking core software?
Core banking software is a centralized system that manages a bank’s core functions, including transaction processing, customer account management and financial reporting. So it is the backbone of a bank’s IT infrastructure.
Why is core banking system important for banks?
Core banking software is essential because it enables banks to deliver seamless, real-time services to their customers. It improves efficiency, reduces operational costs, enhances security, and supports regulatory compliance.
What features should I look for in core banking software?
Key features to look for include:
- Real-time transaction processing
- Customer Relationship Management (CRM)
- Loan and deposit management
- Regulatory compliance tools
- Security and fraud detection
- Multi-channel support (online, mobile, branches)
How to choose a core banking software provider?
Banks typically consider factors such as:
- The vendor’s industry reputation and experience
- The functionality and scalability of the software
- Cost and licensing fees
- Customer support and service level agreements (SLAs)
- The ability to integrate with existing systems
- Regulatory compliance features
How long does it take to implement a new core banking system?
Implementation times can vary widely depending on the complexity of the bank’s requirements and the scale of the deployment. Also it typically ranges from a few months to a few years.
What are the challenges in implementing core banking software?
Common challenges include:
- Integration with existing systems
- Data migration
- Training staff
- Managing change within the organization
- Ensuring regulatory compliance during the transition
How does core banking software support regulatory compliance?
Core banking software supports regulatory compliance by offering features such as:
- Automated reporting and audit trails
- Real-time monitoring and alerts for suspicious activities
- Tools to ensure adherence to international standards and local regulations
- Regular updates to incorporate new regulatory requirements
Can core banking software improve customer experience?
Yes, by providing real-time transaction processing, personalized services and multi-channel support, core banking software can significantly improve the customer experience. Features such as mobile banking, 24/7 availability and fast loan processing contribute to higher customer satisfaction.
Is core banking software suitable for all types of banks?
Core banking software can be customized to meet the needs of different types of banks, including retail banks, neobanks, challenger banks, commercial banks, credit unions and community banks. Also the flexibility and scalability of modern core banking systems allows them to support different banking models and sizes.
