COBOL in banking refers to the use of the COBOL programming language for developing and maintaining critical banking applications. According to provided reference, COBOL is a programming language, not a practice, like double-entry bookkeeping. So, if you start up a new business, and you have an IT team who will develop applications based on what the bankers, accountants, and so on say is needed, they can write that in whatever language they want.
While newer languages exist, COBOL remains prevalent in banking for several reasons:
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Legacy Systems: Many core banking systems were originally built using COBOL. Replacing these systems is a complex and costly undertaking.
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Reliability: COBOL has a proven track record for handling high volumes of transactions and data processing, essential for banking operations.
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Mature Ecosystem: Despite its age, COBOL has a mature ecosystem of tools and skilled programmers, although finding new COBOL developers can be a challenge.
In summary, while new banking applications can be written in any language the IT team chooses, COBOL maintains a significant presence in the banking industry due to the large number of existing systems built on it.
