[Financial IT Association] Complete collection of success stories and practical methods from 9 banking, insurance, and securities firms. Book 'Financial Modernization: Successful Methods for Legacy System Renewal' published on April 18
The Financial IT Association has published a definitive guide on modernizing core systems in the financial sector. Featuring case studies from nine industry leaders like MUFG and Seven Bank, it provides a roadmap for digital transformation and overcoming technical debt in the Japanese financial industry.
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- 📰 Published: April 28, 2026 at 19:00
- 🔍 Collected: April 28, 2026 at 10:32
- 🤖 AI Analyzed: April 28, 2026 at 14:13 (3h 41m after Collected)
Modernization of core systems is an urgent issue for financial institutions such as banks, life insurance companies, non-life insurance companies, and securities firms. However, systems that have been in use for decades since their construction have become complex and massive, and their renewal is by no means easy. Furthermore, they face the serious challenge of a lack of human resources with expertise within the company.
To solve these industry-wide challenges, our association, to which financial institutions and IT vendors belong, pooled its expertise to write this book. It provides detailed explanations ranging from practical methodologies for leading modernization to success to specific examples from nine financial institutions.
■ 1. Background and Challenges: Renewal of complex and massive legacy systems is 'unavoidable'
The reason why DX in Japanese companies has not progressed sufficiently is the existence of legacy systems that have been tightly integrated with operations over many years. This is not just old technology; it contains challenges from both a system perspective and a management perspective.
From a system perspective, functions have become bloated and complex due to long-term additive development, making it difficult to grasp the overall picture. Furthermore, it is serious that design concepts and specifications depend on specific personnel or vendors, becoming a black box.
From a management perspective, IT investment is often viewed as a cost to maintain existing operations rather than a strategic investment. As a result, fundamental renewal has been postponed, leading to the preservation of legacy systems.
The codependent relationship structure between user companies and vendor companies in the Japanese information services industry has prolonged the problem. A situation has arisen where it is difficult to develop human resources within user companies who can understand both business and IT cross-sectionally and draw the overall architecture.
Also, the shortage of IT talent is more a qualitative mismatch than just a matter of numbers. There is an overwhelming shortage of architect-type talent who can understand management strategies and business transformation and make technical choices from an overall optimization perspective, creating a vicious cycle where core talent for DX promotion cannot be secured.
■ 2. Details / Features: Covering practical methodologies and specific examples from nine financial institutions
・Systematic Methodology (Chapter 2)
Includes a 'Modernization Guide' for proceeding with modernization. It covers seven considerations ranging from clarifying goals and requirements to monitoring and evaluation. As architectural strategies, it presents four: 'Full Replacement,' 'Modularization,' 'Wrapper,' and 'Cloud Migration,' preaching the importance of appropriate strategy selection.
・Success Stories of Nine Financial Institutions (Chapter 3)
Rather than just introducing technical implementations, it shares the 'thought process' of how each company defined challenges, made decisions, and led to results.
Participating Companies: Mitsubishi UFJ Financial Group / Seven Bank / SMBC Nikko Securities / Daiwa Securities / Meiji Yasuda Life Insurance / Sumitomo Life Insurance / Nisshin Fire & Marine Insurance / Hokkoku Bank / Acom
・Introduction of Latest Solutions (Chapter 4)
It also explains IT solutions that support renewal, such as Saison Technology and Itochu Techno-Solutions.
■ 3. Recommendation from Kunio Tanigaki, President and CEO of Japan Post Insurance Co., Ltd.
'Status quo' is the greatest risk.
A must-read for the financial industry to sublimate past 'best' into future 'transformation.' The 'absolute stability and trust' that financial institutions have cultivated over many years is the result of the tireless efforts of our predecessors. However, in a modern era where uncertainty is high and AI and data utilization determine competitiveness, you cannot survive with only 'defensive IT.' Do not turn a blind eye to 'technical debt,' which is evidence of past efforts, and place modernization at the very center of management strategy. Here is the compass for steering toward the next growth from an overall optimization perspective.
-- Kunio Tanigaki, President and CEO, Japan Post Insurance Co., Ltd.
■ 4. Message from our Association
Modernization is not just 'preparing for the future,' it is 'creating the future.' The purpose is to build a foundation for companies to acquire new market opportunities and achieve sustainable growth, going beyond mere efficiency and cost reduction.
The publication of this book aims to help not only IT department experts but also those involved in management understand the significance and transformation process of changing the systems that form the foundation of corporate activities.
'By bringing together experiences among practitioners and learning from successes and failures, one can gain unexpected perspectives or proceed with confidence in the success of one's own company's policies. This book is an attempt to organize the knowledge born from such activities and present it as success stories. I hope this book will be the starting arrow to shape that future together.'
-- Takehiro Okuda, Director, Financial IT Association / Member of Modernization Committee (Excerpted and summarized from the 'Preface' of this book)
■ 5. Book Information
• Title: Financial Modernization: Successful Methods for Legacy System Renewal
To solve these industry-wide challenges, our association, to which financial institutions and IT vendors belong, pooled its expertise to write this book. It provides detailed explanations ranging from practical methodologies for leading modernization to success to specific examples from nine financial institutions.
■ 1. Background and Challenges: Renewal of complex and massive legacy systems is 'unavoidable'
The reason why DX in Japanese companies has not progressed sufficiently is the existence of legacy systems that have been tightly integrated with operations over many years. This is not just old technology; it contains challenges from both a system perspective and a management perspective.
From a system perspective, functions have become bloated and complex due to long-term additive development, making it difficult to grasp the overall picture. Furthermore, it is serious that design concepts and specifications depend on specific personnel or vendors, becoming a black box.
From a management perspective, IT investment is often viewed as a cost to maintain existing operations rather than a strategic investment. As a result, fundamental renewal has been postponed, leading to the preservation of legacy systems.
The codependent relationship structure between user companies and vendor companies in the Japanese information services industry has prolonged the problem. A situation has arisen where it is difficult to develop human resources within user companies who can understand both business and IT cross-sectionally and draw the overall architecture.
Also, the shortage of IT talent is more a qualitative mismatch than just a matter of numbers. There is an overwhelming shortage of architect-type talent who can understand management strategies and business transformation and make technical choices from an overall optimization perspective, creating a vicious cycle where core talent for DX promotion cannot be secured.
■ 2. Details / Features: Covering practical methodologies and specific examples from nine financial institutions
・Systematic Methodology (Chapter 2)
Includes a 'Modernization Guide' for proceeding with modernization. It covers seven considerations ranging from clarifying goals and requirements to monitoring and evaluation. As architectural strategies, it presents four: 'Full Replacement,' 'Modularization,' 'Wrapper,' and 'Cloud Migration,' preaching the importance of appropriate strategy selection.
・Success Stories of Nine Financial Institutions (Chapter 3)
Rather than just introducing technical implementations, it shares the 'thought process' of how each company defined challenges, made decisions, and led to results.
Participating Companies: Mitsubishi UFJ Financial Group / Seven Bank / SMBC Nikko Securities / Daiwa Securities / Meiji Yasuda Life Insurance / Sumitomo Life Insurance / Nisshin Fire & Marine Insurance / Hokkoku Bank / Acom
・Introduction of Latest Solutions (Chapter 4)
It also explains IT solutions that support renewal, such as Saison Technology and Itochu Techno-Solutions.
■ 3. Recommendation from Kunio Tanigaki, President and CEO of Japan Post Insurance Co., Ltd.
'Status quo' is the greatest risk.
A must-read for the financial industry to sublimate past 'best' into future 'transformation.' The 'absolute stability and trust' that financial institutions have cultivated over many years is the result of the tireless efforts of our predecessors. However, in a modern era where uncertainty is high and AI and data utilization determine competitiveness, you cannot survive with only 'defensive IT.' Do not turn a blind eye to 'technical debt,' which is evidence of past efforts, and place modernization at the very center of management strategy. Here is the compass for steering toward the next growth from an overall optimization perspective.
-- Kunio Tanigaki, President and CEO, Japan Post Insurance Co., Ltd.
■ 4. Message from our Association
Modernization is not just 'preparing for the future,' it is 'creating the future.' The purpose is to build a foundation for companies to acquire new market opportunities and achieve sustainable growth, going beyond mere efficiency and cost reduction.
The publication of this book aims to help not only IT department experts but also those involved in management understand the significance and transformation process of changing the systems that form the foundation of corporate activities.
'By bringing together experiences among practitioners and learning from successes and failures, one can gain unexpected perspectives or proceed with confidence in the success of one's own company's policies. This book is an attempt to organize the knowledge born from such activities and present it as success stories. I hope this book will be the starting arrow to shape that future together.'
-- Takehiro Okuda, Director, Financial IT Association / Member of Modernization Committee (Excerpted and summarized from the 'Preface' of this book)
■ 5. Book Information
• Title: Financial Modernization: Successful Methods for Legacy System Renewal