Fukushima Bank first to implement SBI Group’s new core banking system
Fukushima Bank has completed the migration to their “Next Generation Banking System” and commenced operations.
The “Next Generation Banking System” is a “cloud-based core banking system for regional financial institutions” developed from scratch by Fukushima Bank, SBI Regional Revitalization Banking System, an SBI Group company, and Future Architect.
On November 11, 2019, Fukushima Bank entered into a capital and business alliance agreement with SBI Holdings and has been implementing various collaborations through the group. Additionally, in the bank’s previous medium-term management plan “Fukugin Fukushima Revitalization Project” (plan period: April 1, 2021 to March 31, 2024), “Promotion of DX” was set as one of the main measures, and the bank worked on business reform and efficiency improvement. As part of these efforts, on January 20, 2022, Fukushima Bankannounced that they would become the first user of this new core banking system and have been working on its development together with the SBI Group and Future Architect.
Features of This System
- Built from scratch, simplifying data: By building the system from scratch, the bank has shifted from a “bank-centric” to a “customer-centric” data model, simplifying procedures and improving operational efficiency.
- Digital-based, enabling paperless and seal-less operations: By introducing tablets and self-service cashiers, the bank is transforming banking operations from paper to digital, improving customer convenience while achieving operational efficiencies such as reducing printing costs and minimizing store space.
- Full open API for easy external integration: The system makes it easier to incorporate new financial products and services from fintech companies, enabling timely provision of new services to customers.
- Rules engine for faster development: By pre-building business rules composed of “conditions” and “actions” within the system, the bank significantly reduced system development time.
- Cost reduction through cloud adoption and system leasing: This system operates in the “SBI Financial Cloud” environment built by the SBI Group on AWS (Amazon Web Services).
Future Plans
Fukushima Bank has formulated and begun implementing a new medium-term management plan, the “SHIN Fukugin Medium-Term Management Plan” (April 1, 2024 to March 31, 2029), covering a five-year period starting from fiscal year 2024. The basic policy is “Maximizing ‘Real’ power with the strength of ‘Digital’.” Specifically, the bank will maximize the use of this system to thoroughly digitalize operations (Digital), halving administrative workload and concentrating human resources on face-to-face (Real) “business support” and “asset formation support,” which are the missions of regional financial institutions. Fukushima Bank will also focus on area-based sales systems and human resource development to enhance the quality and quantity of face-to-face sales and strengthen consulting sales. Through these efforts, the bank aims to become a true regional bank that supports the local economy and contributes to the development of its home region, Fukushima, through “business support” and “asset formation support.”
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