As a fintech, one of the biggest strategic decisions you’ll face is whether to build your own Core Banking System (CBS) or opt for a third-party solution. This decision has long-term implications for control, scalability, and compliance. In this article, we’ll explore the pros and cons of both approaches to help you make an informed decision.
The Core Banking Market: A Growing but Consolidating Space
The global CBS market is booming, expected to reach $62 billion by 2032 with an annual growth rate of 17%. This trend is driven by traditional banks looking to launch fast, standalone digital brands — like Raiffeisen Bank International AG, which launched a digital bank in Poland, independent from its legacy systems.
In France, the culture still leans towards in-house development. Players like Spendesk or Blank only outsource the payment component (via Numeral), while Lydia and Qonto have chosen to build everything internally.
Building Your CBS In-House
✅ Advantages
- Total control: Full customization according to your product and regulatory needs, with internal teams fully aligned to your strategy.
- Vendor independence: No reliance on external roadmaps or feature delivery timelines.
- Tech agnosticism: Freedom to choose partners (e.g., card issuers, partner banks) independently.
❌ Drawbacks
- High upfront costs: Building a dedicated team or legal entity can cost between €2M and €15M in the first year.
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