Core Banking Systems
Banking CIOs are prioritizing core modernization to deliver decentralized and distributed applications. In response, core banking systems are evolving to enhance composability and use of the cloud. This research will aid bank CIOs in identifying solutions that best align with their business goals.
Market Definition
Gartner defines a core banking system (CBS) as the financial institution’s back‐office software that performs real-time or end-of-day processing for deposits and loans. Apart from advancing the processing dates, representative capabilities include transaction posting, interest accrual/payment, service charge calculation and cash management (zero balance, target balance). CBSs provide deposit and loan product servicing with interfaces to other applications, such as customer-facing channels, general ledger systems and reporting tools. CBSs can be deployed on the bank’s premises or run from the cloud or any hosted environment. Bank employees and customers either directly or indirectly use the bank’s CBS.
The CBSs of a financial institution’s back‐office software perform either real-time or end-of-day processing for deposits and loans. Apart from advancing the processing dates, representative capabilities include transaction posting, interest accrual and posting, service charge calculation and cash management (zero balance, target balance). All these processes and steps imply a business model based on conventional banking principles that imply interest accrual on accounts and profitability from any lending practice. Therefore, CBSs, by definition, implicitly exclude Islamic CBSs that, to the contrary, use Islamic financial tools to back Shariah-compliant business models that require different mechanisms to produce profits.
Report 2025
Here is a summary of the vendors featured in the Gartner magic quadrant 2025 report.
For the full analysis and detailed insights, you can read the report
here
and view the magic quadrant graphic
here.
| Market Status | Market Vendor |
|---|---|
Leader |
Thought Machine |
Leader |
Infosys Finacle |
Leader |
TCS BaNCS |
Leader |
Mambu |
Leader |
Intellect Design Arena |
Leader |
Finastra Essence |
Leader |
Oracle FLEXCUBE |
Visionary |
Temenos |
Visionary |
SAP Fioneer |
Niche Player |
Ohpen |
Niche Player |
Vilja Solutions |
Niche Player |
Profile Software |
Challenger |
Engine by Starling |
Challenger |
FintechOS |
Challenger |
10x Banking |