#CLPS Incorporation #Hong Kong #AI Development #Hong Kong Bank

CLPS Incorporation Achieves Major Milestone in AI-Assisted Legacy System Modernization

CLPS Incorporation has recently celebrated a pivotal accomplishment, modernizing a 30-year-old mortgage system for a prominent bank in Hong Kong. This project, significantly enhanced by artificial intelligence (AI), showcases the company's capacity to tackle the complexities of legacy systems effectively. By employing innovative AI solutions, including client-specific models like Microsoft Copilot, CLPS has set a new standard for fintech modernization efforts.

Project Overview

The necessity for a complete transformation of the bank's outdated mortgage system emerged as the institution sought to align with evolving business requirements. The legacy system encompassed a sprawling tech infrastructure, including 138 Virtual Basic (VB) functional programs, 248 Microsoft Access programs, 315 reports, 114 letters, 303 batch jobs, 25 COBOL programs, and 841 stored procedures. This challenge was compounded by limited documentation and a lack of clarity regarding operational logic, making the undertaking complex.

Despite these obstacles, CLPS completed the modernization project in just seven months with a lean team of approximately 20 developers. The strategic use of AI enabled a remarkable 70% automation rate in the conversion of system codes. The transformation involved moving away from outdated VB applications and MS Access databases to a modern tech stack featuring Java, React, and PostgreSQL, all while maintaining continuous business operations. This outcome starkly contrasts traditional modernization projects, which typically require 40-50 developers and two years to complete.

Methodology: Agile Development and AI

CLPS opted for an agile project management framework, allowing them to address the modernization challenges through manageable phases. This iterative model proved advantageous compared to the conventional waterfall methodology, especially for AI-assisted development. By leveraging AI to generate semi-completed code and pseudocode, the team progressively unraveled the system's intricacies. This approach facilitated parallel development, concurrent testing, and functional validation, effectively mitigating risks related to deployment and fostering early issue detection.

The success of this method hinged on three key elements: a team skilled in AI methodologies, a robust AI strategy, and the use of advanced AI models. CLPS’s cross-functional team included project managers, AI specialists, source code experts, Java/React developers, and testing professionals, ensuring a comprehensive understanding and application of AI-assisted development practices.

A systematic AI strategy was critical for navigating the undocumented complexities of legacy systems, guiding their code decomposition, validating outputs against hidden business rules, and ensuring uniformity across hundreds of interconnected functions.

Multifaceted Benefits: Technical and Economic Outcomes

The impact of the project is multifaceted, delivering substantial advantages in both technical and economic domains:

Technical Outcomes

• - Direct Conversion of Legacy Code: Achieved a 70% automation rate in translating VB and MS Access backend processes to Java.
• - UI Transformation: Successfully transitioned the VB and MS Access user interface into React components, enhancing user experience.
• - Database Migration: Smoothly migrated data from MS SQL to PostgreSQL hosted on AWS Cloud.
• - Automated Documentation: Generated comprehensive documentation for previously undocumented system logic, aiding future maintenance and upgrades.

Economic Benefits

• - Reduced Project Timeline: The estimated project cycle was drastically shortened from 24 months to just 7 months.
• - Labor Efficiency: Labor input was reduced by over 60%, saving millions of dollars in direct costs and improving operational efficiency.
• - Lower Future Operation Costs: The streamlined system is projected to significantly decrease long-term operation and maintenance expenses.

Future Implications

The AI-assisted development model utilized successfully by CLPS offers extensive scalability and applicability, particularly for legacy systems built on traditional programming languages such as VB, COBOL, and Report Program Generator (RPG). By combining cutting-edge AI technology, expert knowledge, agile methodologies, and strategic execution, this framework presents a replicable solution for traditional system modernization across various industries.

As expressed by Mr. Raymond Lin, the CEO of CLPS, the accomplishment showcases AI's potential to facilitate efficient transformation, even when developers have limited familiarity with existing systems. For financial institutions like banks, still reliant on outdated yet operational systems, this success underscores a viable path forward in overcoming the pervasive challenges of legacy system modernization.

About CLPS Incorporation

Established in 2005 and headquartered in Hong Kong, CLPS Incorporation is at the forefront of digital transformation and operational efficiency enhancement across industries through AI, cloud computing, and big data innovations. The company operates in fintech, e-commerce, and other sectors, with a global presence in ten countries. For additional insights about the company, please visit CLPS's website. CLPS is poised to empower legacy industries to transition into intelligent, data-driven ecosystems.