Tencent Cloud Supports Fusion Bank's Successful Launch of a Next-Generation Core Banking System

The bank's seamless upgrade, completed in just 10 months, sets a new benchmark for core banking transformations in Hong Kong

HONG KONG, Feb. 21, 2025 /PRNewswire/ -- As digital transformation accelerates worldwide, banks must build core systems that are scalable, agile, and resilient. In October 2024, with the support of Tencent Cloud and leveraging WeBank's independently developed digital banking technology, Fusion Bank completed its migration to a new core banking system in just 10 months—setting a new industry benchmark for core banking upgrades in Hong Kong.

As a licensed digital bank in Hong Kong, Fusion Bank officially commenced operations in December 2020 and has experienced rapid business growth. As demand for its services increased, the bank needed to enhance service quality and operational efficiency, leading Fusion Bank to initiate its next-generation core banking system migration project in December 2023.

Migrating a bank's core system is a highly complex and risk-intensive endeavor. Fusion Bank needed to seamlessly integrate and transform over 150 subsystems across five key banking areas—retail deposits, retail loans, corporate deposits, corporate loans, and foreign exchange services—while ensuring compliance with regulatory and market standards, and minimal user disruption.

To support the migration, Tencent Cloud built a robust cloud computing environment for Fusion Bank, powered by solutions such as Tencent Cloud Database (TDSQL) and Tencent Cloud TCE. TDSQL, fully compatible with MySQL, enabled effortless integration with Fusion Bank's business systems, while its powerful batch migration capabilities facilitated smooth data transfers, minimizing user impact and maintaining business continuity.

Tencent Cloud TCE played a critical role in addressing challenges related to platform deployment, management, and compatibility. Through containerized deployment, it significantly improved resource utilization efficiency, reducing costs by 40% and shortening recovery time objectives (RTO) to within 30 minutes. It also supports various non-x86 architecture CPUs, meeting Fusion Bank's diverse hardware needs.

To enhance operations and maintenance (O&M) efficiency, Tencent Cloud implemented a Configuration Management Database (CMDB), significantly improving system maintainability and simplifying O&M processes. This enabled Fusion Bank's IT O&M team to focus on business innovation and development rather than system management.

The close collaboration between Fusion Bank and Tencent Cloud allowed the migration to be completed in just 10 months. The system switchover took only 15 hours, and within a six-hour data migration window, systems and data from multiple vendors were seamlessly transferred to the new core system.

Billy Chiu, Alternate Chief Executive and Chief Technology Officer of Fusion Bank, said, "We are delighted to have successfully completed Fusion Bank's core banking system migration project in collaboration with Tencent Cloud. By 2027, we anticipate a 53% reduction in non-labor 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."

Liming Hu, Vice President of Tencent Cloud, said, "We are very pleased to assist Fusion Bank in launching its new core banking system. 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."

With over 10,000 financial clients worldwide—300 of which are overseas financial clients spanning 20 countries and regions, including Asia, the Middle East, Europe, and the Americas—Tencent Cloud continues to provide industry-leading digital banking solutions. Its global cloud infrastructure, comprehensive enterprise software, and standardized hardware architecture enable financial institutions worldwide to optimize costs and enhance operational efficiency.

About Tencent Cloud:

Tencent Cloud, one of the world's leading cloud companies, is committed to creating innovative solutions to resolve real-world issues and enabling digital transformation for smart industries. Through our extensive global infrastructure, Tencent Cloud provides businesses across the globe with stable and secure industry-leading cloud products and services, leveraging technological advancements such as cloud computing, Big Data analytics, AI, IoT, and network security. It is our constant mission to meet the needs of industries across the board, including the fields of gaming, media and entertainment, finance, healthcare, property, retail, travel, and transportation.