Hartford Business Journal

10 HARTFORDBUSINESS.COM | JULY 14, 2025 Core System Southington-based fintech COCC hits $224M in annual revenue, spurred by client-ownership model And they have, for decades, and continue to do so. That client loyalty was reflected in a recent survey conducted by the Amer- ican Bankers Association. In it, COCC received the top satisfaction rating among so-called core banking plat- form providers, ranking ahead of top industry players like Temenos AG in Switzerland, London-based Finastra and Fidelity Information Services Inc. (FIS), based in Jacksonville, Florida. "We've been doing this since 1967, and we thought we were doing a good job, so it's a validation for us," Salecky said of the survey results. Core providers COCC and tech companies like it essentially provide the core banking system that financial institutions use to manage their day-to-day operations and customer interactions. According to IBM.com, the term "core" stands for "centralized online real-time environment." "Core banking is the hub, or back-end connection, for multiple branches of the same bank that allows customers the freedom to access account transactions in a single safe entity," IBM states. "Core banking operations can include loan management, new accounts, deposits and withdrawals, among other financial services." These systems can be on-prem- ises or cloud-based, depending on a bank's needs. COCC says it provides a database system that operates "in an online real-time processing environment, encompassing all deposits and loans." COCC's software manages over $130 billion in client assets in 7 million bank and credit union accounts, including 2 million mobile accounts. For fiscal 2024, which ended June 30, the company had revenue of $224 million. It projects a 7% increase to $240 million in fiscal 2025, officials said. "Our footprint is the Northeast, Pennsylvania, Ohio, New York and New Jersey, states where we are legally licensed to sell our solution," Salecky said. "For the most part, we still have a lot of bandwidth to grow in all of those markets." Recently, expansion efforts have focused on Ohio and Pennsylvania, she said, noting that "there are a lot more banks there at this point, and credit unions too." COCC's clients consist of about two-thirds banks and one-third credit unions, but Salecky said the company didn't start selling to credit unions until about 15 to 20 years ago. Its client list includes institutions as small as Fidelity Federal Savings & Loan in Delaware, Ohio, which has just $131 million in assets, to as large as Middlesex Savings Bank in Concord, Mass., with $6 billion in assets. One of its Connecticut clients is Thom- aston Savings Bank, with $1.8 billion in assets. Big or small, though, each financial institution must buy shares of the closely held COCC stock to remain a client. By David Krechevsky davidk@hartfordbusiness.com F or people of a certain age, a television ad from the early 1980s may be hard to forget. It featured a man named Victor Kiam, seated behind a desk, telling the world that he liked the Remington M3 electric shaver so much, "I bought the company!" For Southington-based COCC, a business that provides software for banks and credit unions, a similar sort of thing happens a little more frequently. That's because the fintech company — which was founded in 1967 as the Connecticut On-line Computer Center Inc., but now is known simply as COCC — maintains an interesting relationship with its clients. Just like Kiam, they own the company. Whether it's a new client, or an existing one that has expanded its customer base, each bank or credit union is required to not only pay a fee for using COCC's software, but also buy shares in the company based on the number of customers it serves. That unique relationship was intended from the start. As COCC states on its website, the company "was founded by its clients to provide them with more control over features, costs and the delivery of their technology needs." Many of the original founding finan- cial institutions remain COCC clients today, it adds. That relationship explains COCC's April 28 filing with the U.S. Securities and Exchange Commission, which states that the company sold equity shares valued at $13.88 million. "June 30 is the end of our fiscal year," said Susan W. Salecky, COCC's senior vice president and chief revenue officer. "And around April, we do an assessment of how many accounts are currently on (each client's) system. So, if they have a certain number of accounts on the system, they're required to purchase addi- tional stock in COCC." The additional accounts could have been added organically through normal business growth, or through a merger or acquisition. Regardless, to continue using COCC's software, banks and credit unions need to buy in. Fintech company COCC, which is based at 100 Executive Blvd. North in Southington, is a cooperative, with clients owning a stake in the company. Contributed Photo AT A GLANCE COCC Industry: Fintech Top Executive: Richard A. Leone, Chairman, CEO & President HQ: 100 Executive Blvd. North, Southington Revenue: $224 million Employees: 730 Contact: cocc.com/contact-us Susan Salecky

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