US banks rely on a 65-year-old programming language; companies are paying a premium for developers who know it - The Economic Times
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Business News›News›Trending›US banks rely on a 65-year-old programming language; companies are paying a premium for developers who know it
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US banks rely on a 65-year-old programming language; companies are paying a premium for developers who know it
SECTIONS<br>US banks rely on a 65-year-old programming language; companies are paying a premium for developers who know it
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, ET OnlineLast Updated: Jun 02, 2026, 03:42:00 PM IST<br>Rate Story
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Synopsis<br>A 1959 programming language, COBOL, is powering global finance and government systems. As experienced programmers retire, companies face a talent crisis. This has created a lucrative opportunity for new developers learning this older skill. Banks and agencies are paying top salaries to maintain these vital systems. AI is also being explored to help manage COBOL code.
US banks still depend on a 65-year-old programming language and companies are paying to techies who can maintain this critical technology
While tech companies are offering massive salaries to AI engineers, another group of developers is quietly cashing in on a much older skill. Their expertise isn't in artificial intelligence or cutting-edge software. Instead, they work with a programming language that was created in 1959 and still powers some of the world's most critical financial systems.
That language is COBOL.
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Despite being more than six decades old, COBOL remains deeply embedded in global banking, government systems, and financial infrastructure. As experienced COBOL programmers retire, companies are scrambling to find people who can maintain the software, creating a surprising opportunity for a new generation of developers.
What Is COBOL?<br>COBOL, short for Common Business-Oriented Language, was introduced in 1959 to help businesses process large amounts of financial and administrative data.
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The language was co-designed by pioneering computer scientist and U.S. Navy Rear Admiral Grace Hopper and emerged during the administration of Dwight D. Eisenhower.
Originally intended as a practical business programming language, COBOL ended up becoming one of the most important technologies in modern commerce. Today, much of the world's banking and payment infrastructure still relies on software written decades ago.
The Hidden Technology Behind Trillions of Dollars<br>Most people never see COBOL in action, but they interact with systems powered by it almost every day. Industry estimates suggest that COBOL-based systems handle around $3 trillion in commerce daily.
The language is also involved in the vast majority of ATM transactions worldwide and supports a significant portion of banking operations in the United States.
Major government institutions, including the US Treasury, the Internal Revenue Service (IRS), the Social Security Administration, and the Department of Veterans Affairs, continue to depend on COBOL-powered systems.
This means that although the language rarely makes headlines, it remains one of the most important pieces of software infrastructure in the world.
Why Banks Haven't Replaced It<br>At first glance, replacing a 65-year-old programming language seems like an obvious move. The reality is far more complicated.
COBOL was designed to process financial transactions with exceptional reliability. Over decades, banks built enormous networks of interconnected applications around it. These systems contain business logic, compliance requirements, and operational rules accumulated over generations.
It often requires rebuilding critical systems from the ground up while ensuring that millions of daily transactions continue without interruption.
Some financial institutions have attempted large-scale migrations away from COBOL, only to discover that the process can take years and cost hundreds of millions of dollars.
For many organizations, maintaining existing systems remains the less risky and less expensive option.
A Growing Talent Crisis<br>The biggest challenge facing companies today is not the technology itself. It's finding people who know how to work with it.
Many of the programmers who built and maintained COBOL systems are now reaching...