What is a ledger in fintech? How money apps keep track of balances
By SendPay Business · · 2 min read
A ledger is the record of every money movement in a financial app. The balance a customer sees is worked out from it, so if the ledger is wrong, everything built on it is wrong too.
What goes in a ledger
Each entry records an amount, a currency, the accounts involved, the time and a reference. Entries are added, never edited or deleted; a mistake is fixed with a new, correcting entry, so the full history is always there.
Double-entry bookkeeping
Most fintech ledgers use double entry: every movement is recorded twice, as a debit on one account and a credit on another, and the two always add up to zero. If they ever do not, the system knows something has gone wrong.
How a transfer is recorded
- The app checks the sender has enough available balance.
- It records a debit on the sender's account.
- It records a matching credit on the receiver's or a holding account.
- Balances are updated from the entries, and the ledger is reconciled with the partner's records.
Ledger vs core banking system
A ledger is one part of a core banking system. The core system also handles customers, products, fees, limits and the connections to payment networks.
Where SendPay fits
SendPay platforms come with accounts, transfers, cards and a full admin panel under your own brand, powered by licensed partners, so you do not build a ledger from scratch. SendPay tells you in writing which licences apply to your platform before you pay.
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.