Shizuoka Bank and Hitachi develop cloud-based core banking system

Shizuoka Bank and Hitachi have completed technical and effectiveness verifications for the development of a core banking system hat operates on a public cloud, and have begun system development.

The system, jointly developed by Shizuoka Bank and Hitachi, is scheduled to go live on Amazon Web Services (AWS) in 2027. This will enable Shizuoka Bank to promote a cloud-first approach, leading to the swift provision of higher value-added financial services, strengthening business continuity, and contributing to the realization of a decarbonized society through reduced power consumption.

Additionally, Hitachi will apply this system to its open core banking package “OpenStage” and other open core banking systems, and expand it to other financial institutions, contributing to the promotion of DX in the financial sector.

Background

In recent years, it has become increasingly important for financial institutions to respond flexibly and swiftly to the diversifying and sophisticated values of end-users and rapid environmental changes. Furthermore, there is a growing demand for environmentally conscious management, such as reducing resource and energy consumption associated with business activities.

Against this backdrop, Shizuoka Bank initiated a “cloud-first” approach in December 2023, prioritizing the consideration of public cloud adoption for all group systems. This aims to utilize advanced cloud technologies to respond more quickly to end-user needs and build a financial infrastructure that can provide higher value-added financial services more stably.

Hitachi has been working to provide value to customers and society through its long-standing partnership with AWS and diverse experience, including the migration of mission-critical systems for social infrastructure companies. Recently, in March 2024, Hitachi signed a strategic collaboration agreement with AWS to promote system modernization and cloud migration for customer companies.

In this context, Shizuoka Bank, Hitachi, and AWS have completed technical and effectiveness verifications for the public cloud implementation of the open core banking system, ensuring its feasibility, and have officially begun system construction.

Features of the System

This system will migrate the open core banking system, which went live in 2021, to AWS for operation on a public cloud. The open core banking system jointly developed by Shizuoka Bank and Hitachi has been packaged as “OpenStage” and is being introduced to other financial institutions. It adopts advanced technologies through open architecture for easy function expansion, and by revamping the application structure, it achieves high development productivity and speed, as well as compatibility and flexibility with the latest digital technologies. Migrating to AWS is expected to yield the following benefits:

• Operational Resilience
• Security
• Carbon Neutrality
• Scalability and Sustainability
• Operational Efficiency
• Cost

Shizuoka Bank will continue to promote the swift provision of high value-added products and services by advancing its cloud-first approach. It also aims to become data center-less in the future, contributing to the realization of a decarbonized society in the region by reducing power consumption.

Hitachi aims to apply this initiative to open core banking systems including “OpenStage” and expand it to other financial institutions, supporting the DX of financial institutions.

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