On May 11, at the Tencent Financial Cloud Localization Strategy Summit, Tencent Cloud announced its financial localization strategy: Tencent Cloud will continue to increase technology investment to create a new generation of localized high-quality products, and rely on products to build a full-stack leading domestic digital infrastructure seat. At the same time, Tencent Cloud will also join hands with partners to jointly build a domestic digital solution ecosystem.
At the same time, based on years of experience in more than 20 financial institutions such as large state-owned banks, joint-stock banks, city commercial banks, and Provincial Rural Credit Unions, Tencent Cloud, for the first time, jointly launched with leading ISVs such as China Information, Sunlight Technology, and China Electronics Financial Trust. "White Paper on Distributed Transformation of Tencent Cloud Bank Core System" (hereinafter referred to as "White Paper") provides the financial industry with design ideas and practical methodology for the transformation of core systems to distributed architecture.
(Launching Ceremony of Release of "White Paper on Distributed Transformation of Tencent Cloud Banking Core System")
Fintech, as a technological driver of financial innovation, has gradually become an important engine for enhancing financial services to the real economy. The 2023 government work report pointed out that it is necessary to strengthen the leading role of technological innovation and rely on technological innovation to promote the high-quality development of the real economy. Prior to this, the central bank and the Financial Supervisory Authority also issued guidelines for the development of financial technology, emphasizing the autonomy and controllability of key product technologies.
Tang Daosheng, Senior Executive Vice President of Tencent and CEO of Cloud and Smart Industry Business Group, said, "Finance is the blood of the national economy, and independent innovation is the cornerstone of financial security and long-term development. In the future, we will continue to open up Tencent Cloud's products and technical capabilities, Join hands with industry partners and customers to activate the potential of digital elements and jointly promote independent innovation and steady development of the financial industry."
Pan Runhong, deputy general manager of China Gold Electronics and executive vice chairman of the Beijing Financial Technology Industry Alliance, believes that the independent and controllable construction of financial technology is accelerating; Enter the deep water area and the critical period.
Continue to increase investment in localized technology and build a leading localized digital base
At this summit, Hu Liming, vice president of Tencent Cloud, announced the financial localization strategy: Tencent Cloud will continue to increase investment in self-developed products, and cooperate with financial industry partners to improve the localization ecology and form an independent and controllable financial localization solution , striving to be the vanguard in the practice of localization.
It is understood that the supply capacity of Tencent Financial Cloud's full-stack localized products has achieved national leadership, and the underlying basic products have completed localization adaptation with many chip manufacturers. Up to now, a total of 15 products have passed 21 quality tests of the Ministry of Industry and Information Technology, and more than 700 independent innovation mutual certifications have been completed with partners.
On the technical base, Tencent Cloud provides products including: Tencent Proprietary Cloud TCE, Financial Native Cloud TCS, Tencent Cloud Database TDSQL, TDMQ Distributed Message Queue, CRedis Distributed Cache, Coding R&D Efficiency Platform and other products, fully covering the bank's distributed The technical base required by the core system has been successfully delivered in the core system construction of dozens of banks, including state-owned major banks, joint-stock banks, city commercial banks, and provincial rural credit unions, and is mature and stable.
Among them, Tencent's proprietary cloud TCE has built a cloud multi-core domestic technology base. Based on Tencent's proprietary cloud TCE, financial institutions can quickly build a financial-level ecological cloud platform that meets national standards.
Tencent Cloud Database TDSQL product capabilities continue to break through, providing industry-leading high availability, separation of storage and computing, and enterprise-level security capabilities. In March this year, Tencent Cloud Database TDSQL broke the TPC-C world record with performance data of 814 million transactions per minute.
At the SaaS layer, Tencent Cloud provides a SaaS service platform including Enterprise WeChat, Tencent Conference, and Tencent Documents, which fully covers complex scenarios of financial customers and provides full connection and innovative marketing capabilities.
According to statistics, in the past five years, Tencent's cumulative R&D expenditure has exceeded 200 billion yuan. These long-term investments have consolidated the underlying capabilities of Tencent's independent innovation and contributed continuous momentum to long-term sustainable high-quality growth. As of December last year, Tencent has published more than 62,000 patent applications in major countries and regions around the world, and more than 30,000 patents have been authorized.
Help Bank of China, China Merchants Bank, China Securities and other financial institutions accelerate the process of localization
In the process of distributed transformation, Tencent Cloud also cooperates with ISV manufacturers in the ecology such as Sunlight Technology, China Information Technology, and China Telecom to jointly explore a flexible, diverse, and deeply integrated distributed transformation solution for the bank's core system, supporting banking institutions to accelerate digital transformation .
Li Xiaoping, deputy chief engineer of the Bank of China Software Center, said that the construction of a new generation of technology foundation is not only about product "replacement", but also involves the transformation and upgrading of application architecture and the release of technical capabilities. For the urgent need for the transformation of general business systems and key business systems, BOC jointly promotes it in accordance with the strategy of "parallel technology structure transformation and product replacement strategy". While promoting the transformation of distributed architecture and cloud application product scale, BOC is also actively carrying out research and development of key core technologies to enhance independent research and development capabilities, thereby providing stronger support for business transformation and development.
Du Zhiming, general manager of China Merchants Bank's cloud database center, said that China Merchants Bank's cloud includes native cloud (ACS) and financial transaction cloud (FTC). These two clouds are China Merchants Bank's new digital infrastructure for the future. The native cloud platform (ACS) closely follows the characteristics of advanced public cloud technology, builds traditional open system capabilities into cloud services, and supports China Merchants Bank's rapid innovation in the cloud era; the financial transaction cloud platform (FTC) replaces the traditional host architecture with a mature and stable distributed architecture , to solve problems such as massive transactions, data performance and capacity, and unsustainable host upgrades.
Li Jiange, Director of the Information Technology Department of China Securities Securities, introduced that China Securities Securities has started the work related to localization transformation since 2020, expanding the scope of transformation year by year. By 2023, it is expected to complete the localization transformation of more than 50 systems. China Securities Securities makes full use of localized databases, big data platforms, middleware and operating systems to accelerate the process of fully localized business systems.
Yang Jianliang, deputy general manager of the Technology Development Department of CPIC Life Insurance, shared the localization process of CPIC Life Insurance: the core system architecture of CPIC Life Insurance has been evolving from the original single application architecture stage to the cloud-native distributed architecture. Utilizing the micro-service architecture design of Tencent Cloud, CPIC Life gradually decoupled and restructured the core system, shortened the response time of key services by more than 30%, and increased the resource utilization rate by more than 80%. A solid step has been taken.
Statistics show that Tencent Cloud has established cooperative relationships with the People's Bank of China and the six major state-owned banks; 90% of customers in leading commercial banks have adopted Tencent Cloud's solutions in digital transformation, and 70% of them are applied in core or key business areas . The top ten brokerages all choose Tencent cloud services, among which private cloud platform cooperation is industry-leading. 7 of the 12 largest insurance groups chose to cooperate with Tencent Cloud in depth.
Practice methodology "White Paper on Distributed Transformation of Tencent Cloud Commercial Bank Core System" is officially released
At the meeting, Tencent Cloud, for the first time, jointly released the "White Paper on Distributed Transformation of the Core System of Tencent Cloud Commercial Banks" jointly with top application system manufacturers in the industry such as China Information Technology, Sunlight Technology, and China Electronics Financial Trust.
Based on the distributed transformation practice of Tencent Financial Cloud in more than 20 banking institutions such as large state-owned banks, joint-stock banks, city commercial banks, and provincial rural credit associations over the years, the white paper has carried out a comprehensive and systematic summary and precipitation, and provided core information for the financial industry. Design ideas and practical methodology for system transformation to distributed architecture.
With the rapid development of financial technology, banking business has shown a leapfrog development trend in recent years. However, the core system of the centralized architecture of traditional banks generally faces challenges such as slow product iteration innovation, insufficient self-control ability, insufficient ability to deal with massive and high concurrency, high marginal expansion costs, and risks in hardware supply. The transformation from "centralized" to "distributed" has become an inevitable path to solve the problem.
At the level of technical architecture, the centralized architecture is technically "putting all eggs in one basket". The distributed transformation of the bank's core is to urge the bank to transform from a "fat core" to a "thin core" on the one hand, and on the other hand to realize the "micro-service" of transactions and the independence of functional modules.
The white paper pointed out that in terms of technical architecture design, Tencent Financial Cloud investigated the distributed core system architectures of many banks and summarized them into six main design points, namely: data segmentation strategy, technical architecture strategy, service model strategy, business continuity performance, R&D efficiency, and distributed operation and maintenance.
Based on this, Tencent Cloud formed the overall architecture of the distributed core system of a new generation of banks, and launched two distributed core architecture technical routes: the micro-service model and the unitized architecture model.
Among them, the microservice architecture focuses on using the design concept of microservices to decouple applications, and using microservice technology to rebuild the intercommunication and governance models between applications. The unitized architecture focuses more on overall planning and is more inclined to top-level governance.
There is no conflict between the two structures, because unitization is the enhancement of micro-service architecture at the macro-architecture level, while micro-service is the support of unitization architecture at the micro-mechanism level. Through the differentiated design of data segmentation, expansion and routing, transaction processing mechanism, and grayscale implementation mechanism, the two can better achieve technical diversity, openness, and standardization. Banks of different sizes such as commercial banks provide accurate, mature and stable solutions to fully meet the business and model transformation needs of various banks under the new situation.
In the future, Tencent Financial Cloud will continue to deepen the localization track, improve the core competitiveness of products, and work with ecological partners to help the digital transformation of the financial industry out of the deep water area.