## Introduction to Core Banking
“Core banking modernization" refers to the process of keeping up with the evolution of technology that supports the “engine” of a bank or financial institution (FI). Core banking modernization may go by a slightly different name to different people or organizations; however, the main idea remains.

[Core banking modernization](https://www.levvel.io/resource-library/watch/making-core-modernization-manageable-a-practical-approach-to-getting-started "Making Core Modernization Manageable Webinar") is critical to staying competitive, closing the technology deficit, and positioning your tech stack. It can promote competitive advantage, improve processing, boost customer offerings, and encourage agility.

Over the past decade, the introduction of cloud adoption, fintech partnerships, and evolving customer expectations have made digital transformation even more critical for middle market, regional, and community banks. Levvel’s [2021 FI Executive Report](https://www.levvel.io/resource-library/access/executive-report-is-your-bank-ahead-or-behind "Executive Report: Is Your Bank Ahead or Behind?") highlights how many FIs may be behind in key modernization efforts, like replacing core applications.

![An-Introduction-to-Core-Banking-Figure1](//images.contentful.com/zqj370hybozc/5iU4TAOAAw4PmIT0Ms2hco/1f9a6cf6790162e6f25f13434ae29b00/An-Introduction-to-Core-Banking-Figure1.png)

The largest FIs (for example, the top-10 largest in the U.S.) have a large, dedicated budget to enhance customer experiences and upgrade technology to solidify their size and competitive positioning. Despite the lack of budget, smaller and mid-sized banks still have the opportunity to take advantage of the proliferation of technologies that currently exist in modernizing their core banking systems.

## Examples of Core Banking

- [Cloud-native cores](https://www.levvel.io/our-work/a-top-50-u-s-bank-builds-proof-of-concept-of-digital-only-cloud-core-companion-bank-leveraging-finxact-apiture-savana "A Top 50 U.S. Bank Builds Proof-of-Concept of Digital-Only, Cloud-Core, Companion Bank Leveraging Finxact, Apiture, and Savana") that reduce an infrastructure footprint and allow virtualization
- Real-time processing cores that allow up-to-date information and unlock powerful data and analytics
- Open APIs that enable plug-and-play products and services for fintech providers (meaning FIs don’t have to dedicate entire departments to build, manage, and maintain what can be complex offerings), and quickly switch out components with more favorable licensing and usage costs

FIs are at various stages of progress in core modernization efforts and tech-stack upgrades; however, there are plenty of areas of opportunity toward a modern, flexible setup that allows these firms to remain competitive (or even improve their technology). 

## Summary
[Getting started and deciding the next steps](https://www.levvel.io/resource-library/watch/making-core-modernization-manageable-a-practical-approach-to-getting-started "Making Core Modernization Manageable Webinar") while facing budget or efficiency demands can seem overwhelming. However, with a proven integration partner, banks can unlock the benefits of modern core technology while avoiding pitfalls that can delay or doom a complex initiative like this. Our next blog in this series will explore the top 10 benefits a core modernization can provide.

An Introduction to Core Banking

Levvel, Finxact, and Regions Bank experts explore how FIs should approach core modernization to ensure they mitigate risk and achieve strategic outcomes.

Making Core Modernization Manageable: A Practical Approach to Getting Started

Levvel's Jason Summers explores core banking modernization and how banks can embrace technology to meet evolving customer expectations. 

An Introduction to Core Banking

Making Core Modernization Manageable: A Practical Approach to Getting Started

An Introduction to Core Banking

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