Fusion Bank, a licensed digital bank in Hong Kong, has completed its migration to a new core banking system in collaboration with Tencent Cloud.
The migration, which took 10 months, was supported by WeBank’s digital banking technology.
Since commencing operations in December 2020, Fusion Bank has seen rapid growth, necessitating improved service quality and operational efficiency. The bank launched its core banking system migration in December 2023 to address these needs.
The migration involved integrating and transforming over 150 subsystems across five banking areas: retail deposits, retail loans, corporate deposits, corporate loans, and foreign exchange services.
The process had to ensure compliance with regulatory requirements while minimising disruptions to users.
Tencent Cloud provided the cloud computing infrastructure, incorporating solutions such as Tencent Cloud Database (TDSQL) and Tencent Cloud TCE. TDSQL, compatible with MySQL, enabled seamless integration with Fusion Bank’s systems and facilitated data migration with minimal impact.
Tencent Cloud TCE improved resource utilisation through containerised deployment, reducing costs by 40% and cutting system recovery time to 30 minutes.
A Configuration Management Database (CMDB) was also implemented to enhance system maintenance and simplify operations.
This allowed Fusion Bank’s IT team to focus on business development rather than system management.
The migration was completed in 10 months, with the system switchover taking 15 hours and data migration completed within six hours.
Billy Chiu, Alternate Chief Executive and Chief Technology Officer of Fusion Bank, stated,
“By 2027, we anticipate a 53% reduction in non-labour IT costs compared to 2024, with these costs decreasing from 60% to 39% of total expenses. Beyond cost efficiency, the new core system enhances our agility, allowing us to respond swiftly to market shifts and introduce new financial products.”
Liming Hu, Vice President of Tencent Cloud, added,
“The success of this migration highlights the strength of Tencent Cloud’s solutions in supporting digital transformation in the financial sector. We look forward to assisting more financial institutions in upgrading their core banking systems.”
Featured image: Jun Cao, General Manager of Tencent Cloud Commercial Banking Solutions; Ming Zhou, Vice General Manager of WeBank Digital Finance Development Department; Billy Chiu, Alternate Chief Executive and Chief Technology Officer of Fusion Bank; Liming Hu, Vice President of Tencent Cloud and Double Tang, Senior Director of Cloud Infrastructure & Application Management of Fusion Bank (From left to right)