Legacy Modernization in Japan’s Financial Industry, Part 1: Survey Analysis and Status Update
This report draws on a spring 2015 Celent survey on legacy modernization. More than 60 firms including banks, insurers, brokers, and asset management firms participated in the survey.
This report sheds light on the current state of core business systems and core system modernization, the outlook for the future, and industry challenges.
Survey questions included:
- At what state are Japan’s financial institutions in terms of legacy system modernization?
- To what extent are business cases being considered in the legacy modernization process?
- To what extent are companies looking at employing new technologies, and how is this affecting modernization?
“Through mergers and system integrations, Japan has exhibited a peculiar pattern of forging ahead with patchwork solutions,” says Eiichiro Yanagawa, a senior analyst with Celent’s Asian Financial Services practice and author of the report. “Today, legacy systems have become so bloated that their applications and data models have lost flexibility, and there is duplication of systems and processes. Therefore, they fall short of producing value for the customer.”
This report, Part 1, provides an overview and summary of the survey results. Part 2 includes an analysis of survey results and salient thoughts expressed in interviews, addressing the implications of both while offering recommendations for Japan’s financial industry.