software engineering

JCB Taps IBM to Overhaul Core Systems - Targets 20% Efficiency Gain in Strategic AI Shift

Norbert Gehrke

22 Dec 2025 — 3 min read

JCB, Japan’s only international payment brand, has entered into a strategic AI partnership with IBM Japan to fundamentally restructure its core system development. By integrating IBM’s Generative AI platform, watsonx, JCB aims to transition away from traditional labor-intensive development models, positioning AI as a central "joint development partner" to drive cost reductions and accelerate speed-to-market.

Strategic Context

Facing intensifying competition in the global FinTech sector, JCB is moving to overhaul its IT infrastructure by embedding AI across the entire development lifecycle—from initial design to final operation. The partnership leverages IBM Japan’s consulting capabilities and proprietary technology to modernize JCB’s mission-critical systems, many of which rely on legacy architecture.

Operational Impact and Use Cases

The collaboration focuses on modernizing the "waterfall" development process typical of major financial institutions. Key initiatives already underway include:

COBOL Code Generation: The system utilizes generative AI to interpret external design documents and automatically generate high-precision program specifications and COBOL code, a legacy language still ubiquitous in banking but facing a shortage of skilled human developers.
Enhanced Testing Protocols: AI is being deployed to generate comprehensive unit test cases and "black-box" test scenarios ensuring quality standards are met without human bias.
Regulatory Compliance: The platform automatically generates test data compliant with over 500 partner-specific interface specifications and strict industry regulations.

According to JCB, pilot implementations in select systems have already demonstrated an approximate 20% improvement in development efficiency across the design and testing phases.

Future Outlook

JCB intends to expand this AI-driven development model to the upcoming renewal of its next-generation systems. Future applications will include utilizing natural language processing for requirement definitions and automated code reviews.

"We are redefining the development style from a human-centric approach to one where AI is integral to the process," the company stated, signaling a long-term commitment to establishing a new standard for financial IT development.

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