Many banks and fintech companies have outgrown legacy platforms that were never designed for today’s digital usage patterns. In 2025, the core banking software market is estimated at USD 13.1 billion, and its continued growth is closely tied to rising expectations around real-time access, regulatory demands, and the rapid expansion of mobile banking. Recent industry research indicates that around 65% of banks are already in the process of moving to new-generation core platforms. This trend is hardly surprising given that 74% of customer interactions now take place through mobile channels, placing increasing pressure on institutions to ensure that the technology behind their services can support modern levels of activity.
What Is Core Banking?
Core banking refers to the system of record that powers a financial institution’s essential operations. It maintains account balances, processes payments, records ledger entries, supports deposits and withdrawals, and ensures that transactions are handled accurately and consistently. In practice, it sits beneath every customer-facing product, from cards to mobile apps. Over the past decade, core banking has shifted from monolithic legacy systems to modular, API-driven architectures designed to integrate easily with external services, scale to meet demand, and support the regulatory obligations of multiple jurisdictions.
The Purpose of Core Banking Providers
Core banking providers supply the underlying technology that enables banks and fintechs to operate efficiently without having to engineer every component internally. Their systems handle real-time transaction processing, keep financial records in order, support compliance and reporting, and connect institutions to payment networks, identity verification tools, card issuers, and other essential services. The aim is straightforward: to give financial organisations a reliable and flexible foundation so they can focus on product development, cost control, customer experience, and innovation rather than managing a complex infrastructure stack.
The Top Core Banking Providers in 2026
Here is an overview of the core banking providers expected to play a central role in core banking throughout 2026.
SDK.finance
SDK.finance is a leading core banking provider for teams seeking a modern system that enables a rapid market launch. Since 2013, the company has delivered a modular, secure Platform certified to PCI DSS Level 1 and ISO 27001:2022, helping banks, financial institutions, PSPs, and fintechs avoid the cost and complexity of building their core infrastructure. The Platform includes 60+ functional modules, a configurable back office, and white-label mobile banking apps for iOS and Android. It is available as a cloud subscription or a source code licence for organisations that want full control over their technology stack.
Examples of products commonly built on SDK.finance include:
- Neobanking solutions with accounts, KYC, transfers, and card issuing
- Digital wallets for EMIs, PIs, AISPs, and PISPs
- Closed-loop wallets for marketplaces and corporate ecosystems
- Real-time payment processing systems
- Merchant acquiring tools for online, QR, and POS acceptance
SDK.finance is regularly recognised at the PayTech Awards and Banking Tech Awards for its core banking technology, and it supports customers across the United States, Europe, MENA, Africa, and other markets.
Temenos
Temenos remains one of the most widely adopted core platforms among global financial institutions. It offers broad functionality across retail, corporate, and wealth management, and is often selected for large digital transformation initiatives. Institutions with complex regulatory or multi-country requirements tend to favour Temenos thanks to its depth, maturity, and long-standing presence in the market. With 18-22% of IT budgets now dedicated to infrastructure modernisation, many banks view Temenos as a stable long-term choice.
Mambu
Mambu’s cloud-native architecture and modular design have made it a popular option among digital banks, lenders, and fintech companies. Its SaaS model appeals to organisations seeking to avoid the operational overhead of on-premise deployments. More than 70% of digital-only banks launched since 2023 have adopted cloud-based systems, and Mambu remains one of the leading platforms in this segment due to its interoperability and relatively fast implementation timeline.
Backbase
Backbase is primarily known for helping financial institutions improve their digital engagement. Instead of replacing the core, it acts as a modern layer for onboarding, authentication, and everyday banking journeys. With mobile channels accounting for 74% of customer activity, Backbase’s focus on user experience gives institutions a way to update customer interfaces even when a full core replacement is not yet feasible.
Oracle FLEXCUBE
Oracle FLEXCUBE serves more than 600 banks worldwide. It stands out for its automation capabilities, extensive reporting, and broad regulatory support. As API usage in banking has surpassed 3.1 billion calls per month, FLEXCUBE’s orchestration and integration capabilities are becoming increasingly important for institutions with diverse system landscapes.
Finacle (Infosys)
Finacle, used by more than a billion end users, offers real-time processing, strong analytics features, and cloud readiness. A significant number of European institutions – roughly 44% in 2025 – are exploring composable or modular banking structures. Finacle’s architecture is built to support this type of incremental transformation, making it a practical option for institutions that prefer staged upgrades over full migrations.
Finastra
Finastra provides a broad suite of financial solutions covering retail and corporate banking, payments, treasury, and lending. It supports a gradual approach to core modernisation, allowing institutions to adopt new components without replacing the entire system at once. This flexibility is especially valuable for larger banks with complex operational environments.
FIS
FIS offers long-established core banking and payments solutions and is widely used by mid-sized and large banks. It is known for its reliability, regulatory maturity, and the breadth of its financial technology ecosystem, which covers issuing, acquiring, digital banking, and merchant services.
Updated Comparison Overview
| Provider | Cloud-native | API-first | Market focus | Key strength |
| SDK.finance | Yes | Yes | Banks, fintechs, PSPs, enterprises | Fast launch, modular architecture, source code option, white-label mobile banking apps |
| Temenos | Partial | Yes | Global banks | Enterprise-grade functionality |
| Mambu | Yes | Yes | Neobanks, lenders, fintechs | Composable SaaS model |
| Backbase | Yes | Yes | Banks modernising UX | Digital engagement layer |
| Oracle FLEXCUBE | Partial | Yes | Global banks | Automation and interoperability |
| Finacle | Yes | Yes | Retail and corporate banks | Real-time processing, analytics |
| Finastra | Yes | Yes | Tier 1 and 2 institutions | Broad product coverage |
| FIS | Partial | Yes | Mid-sized and large banks | Stability and longevity |
The Road Forward for Core Banking
With 1.3 billion users of digital-only banks in 2025, institutions face increasing pressure to ensure their core systems can support rapid product delivery, regulatory complexity, and rising transaction volumes. Modern platforms offer a range of advantages – from API-driven integration and real-time processing to modular deployment and cloud scalability.
SDK.finance represents a strong option for organisations seeking fast implementation, clear architectural flexibility, and the ability to obtain full source code ownership. For banks and fintech teams aiming to balance time-to-market with long-term control of their technology stack, it offers a compelling alternative to more traditional core systems.