Hong Kong’s licensed digital bank Fusion Bank has migrated to a next-generation core banking system with the support of Tencent Cloud, completing the transition in 10 months.
The upgrade, leveraging WeBank’s digital banking technology, is said to be a major milestone in core banking modernisation in Hong Kong.
Launched in December 2020, Fusion Bank initiated the migration project in December 2023 to enhance service quality and operational efficiency amid growing customer demand.
The transition involved integrating and transforming more than 150 subsystems across retail and corporate banking services, including deposits, loans, and foreign exchange, along with ensuring regulatory compliance and minimal user disruption.
Fusion Bank alternate chief executive and chief technology officer Billy Chiu said: “By 2027, we anticipate a 53% reduction in non-labour IT costs compared to 2024, with these costs gradually decreasing from 60% to 39% of our total expenses.
“Beyond cost efficiency, the new core system enhances our agility, allowing us to swiftly respond to market shifts by introducing innovative financial products and providing our customers with superior financial experiences in a timely manner.”
Tencent Cloud provided an advanced cloud computing environment for the migration, utilising solutions such as Tencent Cloud Database (TDSQL) and Tencent Cloud TCE.
TDSQL, fully compatible with MySQL, facilitated seamless integration with Fusion Bank’s business systems and enabled efficient data migration with minimal operational impact.
Tencent Cloud TCE streamlined platform deployment and management through containerised deployment, improving resource utilisation and reducing costs by 40%.
The system’s recovery time objective (RTO) was also reduced to within 30 minutes.
To enhance operations and maintenance efficiency, Tencent Cloud implemented a Configuration Management Database (CMDB), improving system maintainability and reducing administrative complexity.
This allowed Fusion Bank’s IT team to focus on business innovation rather than system management.
The migration was completed within a 15-hour system switchover window, with data from multiple vendors transferred seamlessly in six hours.
Tencent Cloud vice president Liming Hu said: ” The success of this migration underscores the strength of Tencent Cloud’s proprietary solutions, including TCE and TDSQL, in driving digital transformation in the financial sector.
“We look forward to empowering more financial institutions in upgrading their core banking systems, accelerating fintech innovation in Hong Kong and beyond.”
