Mega and joint-stock banks have transitioned to modern database systems, and now, city and rural banks, like Bank of Jiangsu are gaining momentum in adopting next-generation enterprise-level database platforms. 

Bank of Jiangsu has constructed a high-performance enterprise-level database system based on Huawei’s GaussDB, a cloud-native database with distributed architectures. 

The data migration of 40 business systems to this new platform was completed in just five months, enabling the bank to meet the increasing demands for real-time transactions and data usage. This upgrade supports large-scale data concurrency and throughput. It serves as a cornerstone for the bank’s overall digital transformation, as it pivots to become an “intelligent, personalised, international, and comprehensive” service-led bank.   

The shift is an essential priority for the bank to remain competitive, agile, and sustainable. The integration of emerging technologies such as artificial intelligence (AI), machine learning (ML), and blockchain requires the modernisation of banks’ legacy and siloed database infrastructure. This transformation is essential for future-proofing banking operations and enabling continuous innovation, from customer service to fraud detection and beyond. 

Bank of Jiangsu, one of China’s leading city commercial banks, has assets worth RMB 3.9 trillion ($542 billion) and operates mainly in business banking, supporting the local economy in Jiangsu, one of China's most developed provinces. Its coastline and proximity to Shanghai make Jiangsu an important centre for manufacturing and supply chain.

Building a next-generation enterprise-level database system

Bank of Jiangsu’s transition to the next-generation enterprise-level database system was driven by the need for real-time data processing and large-scale transactions in a dynamic digital financial landscape. However, the process posed significant challenges, particularly in migrating from traditional centralised databases to a modern, scalable platform. One major hurdle was the application migration and transformation, which required meticulous planning to ensure compatibility with existing systems while maintaining operational continuity.

To address these challenges, Bank of Jiangsu developed a comprehensive roadmap encompassing every stage of the project. This included top-level planning, solution design, data migration, system fine-tuning, and rigorous testing. Leveraging a phased migration approach, the bank transitioned over 40 business systems in five months, achieving a 95% automation rate. This approach minimised disruption to operations while enhancing efficiency. The bank designed the system for adaptability and reliability, ensuring it can evolve with future technological developments and the bank's growing business needs. 

In recognition of these efforts, Bank of Jiangsu and Huawei Technologies received the Best Data Integration and Framework Implementation in Regional Finance award at The Asian Banker 2024 China Awards.

Data infrastructure transformation enables smart data-driven business solutions

Bank of Jiangsu has placed a strong emphasis on intelligence as the foundation for its digital transformation. It established a Research Institute to conduct prospective studies and foster advancements in the banking sector, which serves as the powerhouse of financial technology innovation. 

Zhu Yan, deputy general manager of the information technology department at Bank of Jiangsu, said, “Bank of Jiangsu’s digital transformation began with a clear understanding of future banking trends and strategic planning by its senior management.” A dedicated working group was set to coordinate digital innovation projects, and ensure they align with the bank’s strategic goals. Over 500 projects have been launched in recent years, accelerating the bank’s digital finance initiatives. 

The bank’s digital strategy focused on three main areas: enabling business innovation through technology, optimising business processes for operational efficiency, and enhancing customer experience for high-quality services. This roadmap guides the bank’s digital transformation.

Bank of Jiangsu has leveraged emerging technologies, including generative artificial intelligence (GenAI) to optimise business processes and enhance customer experience. The bank introduced "Smart Xiaosu", an industry-level large language model (LLM) service platform, designed to enhance customer service, optimise business processes, and improve employee efficiency. The platform is already seeing significant usage, with an average of 12,000 daily sessions.

Digital transformation has also enhanced the bank’s process optimisation and efficiency. By centralising business management and adopting intelligent technologies to replace manual operations, the bank has completed over 100 projects to optimise workflows. These efforts have reduced operating costs and improved management efficiency, effectively replacing the workload of 155 employees annually.

Leveraging data infrastructure for better customer insights and services 

The bank's digital transformation extends beyond its internal operations to have a profound impact on its customers and broader social and economic development. The bank created "Sui-e-Rong", a digital lending product supported by big data. It has provided financial support to 140,000 small and micro enterprises, disbursing RMB 250 billion ($34.7 billion) in loans. The bank has expanded its payment capabilities, including the introduction of e-CNY (digital RMB) services. 

In 2023, Bank of Jiangsu's e-CNY transaction volume exceeded RMB 100 billion ($13.9 billion), highlighting its leadership in integrating digital currency into everyday banking operations. The bank launched the “Bank of Jiangsu Financial Butler” platform, supporting the digital transformation of over 50,000 business customers, further enabling businesses to optimise operations and embrace digital services.

As financial technology continues to evolve, Bank of Jiangsu is well-positioned with its full-stack cloud-native capabilities to embrace new technologies such as Fed-AI, GenAI and digital employee. According to Zhu, this will drive further strides in digital transformation and digital financial services.