CLPS Incorporation Leverages AI for Successful Legacy System Modernization at a Major Hong Kong Bank
CLPS Incorporation (Nasdaq: CLPS) has successfully modernized a 30-year-old legacy mortgage system for a major Hong Kong bank using artificial intelligence, including Microsoft Copilot. The project achieved a 70% automation rate in system code conversion, transforming VB applications and MS Access programs to a modern Java/React/PostgreSQL stack.
The modernization project, completed in just 7 months with 20 developers (versus traditional 24 months with 40-50 developers), successfully converted 138 VB programs, 248 MS Access programs, and hundreds of other components. The implementation resulted in over 60% reduction in labor costs and significant operational savings.
CLPS Incorporation (Nasdaq: CLPS) ha modernizzato con successo un sistema ipotecario legacy di 30 anni per una grande banca di Hong Kong impiegando l'intelligenza artificiale, incluso Microsoft Copilot. Il progetto ha raggiunto un tasso di automazione del 70% nella conversione del codice, migrando applicazioni VB e programmi MS Access a un moderno stack Java/React/PostgreSQL.
La modernizzazione è stata completata in soli 7 mesi con 20 sviluppatori (rispetto ai tradizionali 24 mesi con 40-50 sviluppatori) e ha convertito con successo 138 programmi VB, 248 programmi MS Access e centinaia di altri componenti. L'implementazione ha portato a una riduzione dei costi del lavoro superiore al 60% e a significativi risparmi operativi.
CLPS Incorporation (Nasdaq: CLPS) modernizó con éxito un sistema hipotecario legacy de 30 años para un importante banco de Hong Kong utilizando inteligencia artificial, incluido Microsoft Copilot. El proyecto alcanzó una tasa de automatización del 70% en la conversión de código, transformando aplicaciones VB y programas MS Access a una pila moderna Java/React/PostgreSQL.
El proyecto de modernización se completó en solo 7 meses con 20 desarrolladores (frente a los tradicionales 24 meses con 40-50 desarrolladores), convirtiendo con éxito 138 programas VB, 248 programas MS Access y cientos de otros componentes. La implementación resultó en una reducción de más del 60% en costos laborales y ahorros operativos significativos.
CLPS Incorporation (Nasdaq: CLPS)는 Microsoft Copilot을 포함한 인공지능을 활용해 홍콩의 주요 은행을 위한 30년 된 레거시 모기지 시스템을 성공적으로 현대화했습니다. 이 프로젝트는 시스템 코드 변환에서 70% 자동화율을 달성하며 VB 애플리케이션과 MS Access 프로그램을 Java/React/PostgreSQL의 최신 스택으로 전환했습니다.
현대화 작업은 전통적인 40-50명 개발자에 의한 24개월 대신 20명 개발자, 7개월 만에 완료되었으며 138개의 VB 프로그램, 248개의 MS Access 프로그램 및 수백 개의 기타 구성 요소를 성공적으로 변환했습니다. 도입 결과 노무비가 60% 이상 절감되고 운영상 상당한 비용 절감이 이루어졌습니다.
CLPS Incorporation (Nasdaq: CLPS) a modernisé avec succès un système hypothécaire legacy de 30 ans pour une grande banque de Hong Kong en utilisant l'intelligence artificielle, dont Microsoft Copilot. Le projet a atteint un taux d'automatisation de 70% dans la conversion du code, en transformant des applications VB et des programmes MS Access vers une stack moderne Java/React/PostgreSQL.
La modernisation a été réalisée en seulement 7 mois avec 20 développeurs (contre 24 mois habituellement avec 40–50 développeurs), convertissant avec succès 138 programmes VB, 248 programmes MS Access et des centaines d'autres composants. La mise en œuvre a entraîné une réduction des coûts de main-d'œuvre de plus de 60% et des économies opérationnelles significatives.
CLPS Incorporation (Nasdaq: CLPS) hat für eine große Bank in Hongkong ein 30 Jahre altes Legacy-Hypothekensystem erfolgreich modernisiert und dabei künstliche Intelligenz, einschließlich Microsoft Copilot, eingesetzt. Das Projekt erzielte eine Automatisierungsrate von 70% bei der Codekonvertierung und wandelte VB-Anwendungen und MS Access-Programme in einen modernen Java/React/PostgreSQL-Stack um.
Die Modernisierung wurde in nur 7 Monaten mit 20 Entwicklern abgeschlossen (gegenüber üblichen 24 Monaten mit 40–50 Entwicklern) und konvertierte erfolgreich 138 VB-Programme, 248 MS Access-Programme sowie Hunderte weiterer Komponenten. Die Umsetzung führte zu einer Reduzierung der Personalkosten um über 60% und zu erheblichen operativen Einsparungen.
- Achieved 70% automation rate in system code conversion
- Reduced project timeline from 24 months to 7 months
- Decreased labor requirements by over 60%, generating millions in cost savings
- Successfully developed replicable AI-assisted model for future modernization projects
- Complex project challenges due to limited documentation
- Minimal understanding of system's operational logic required additional effort
Insights
CLPS demonstrates breakthrough AI-driven legacy system modernization, achieving 70% automation and cutting project time by 70% with significant cost savings.
CLPS has achieved a remarkable technological feat by modernizing a 30-year-old legacy mortgage system for a major Hong Kong bank using AI tools including Microsoft Copilot. The scale of this modernization is impressive - transforming 138 VB programs, 248 MS Access programs, 315 reports, and hundreds of other components with minimal documentation.
What makes this achievement particularly significant is the 70% automation rate in code conversion, transforming legacy VB and MS Access systems into a modern Java/React/PostgreSQL stack. The company completed this with just 20 developers in 7 months, compared to the industry standard of 40-50 developers over 24 months - representing a 60% reduction in labor costs and 70% reduction in project time.
The technical approach combined AI with agile development methodologies, allowing parallel development and early error detection. This iterative process enabled the team to progressively decipher undocumented system logic through AI-generated pseudocode, with developers then completing and validating the partially generated code.
What's most valuable about this case study is its replicability. The framework CLPS has developed can be applied to other legacy systems built on traditional languages like COBOL and RPG. This addresses a critical pain point in the financial industry, where institutions often struggle with maintaining outdated yet business-critical systems due to documentation gaps and specialized knowledge requirements.
For financial institutions worldwide still operating legacy systems, this represents a viable pathway to modernization without the traditional high costs and extended timelines that have historically made such projects prohibitively expensive and risky.
Project Challenges and Outcomes
To meet its evolving business needs, the bank required a complete overhaul of its legacy mortgage system. CLPS successfully modernized a vast and intricate infrastructure, which comprised of 138 Virtual Basic (VB) functional programs, 248 Microsoft (MS) Access programs, 315 reports, 114 letters, 303 batch jobs, 25 COBOL programs, and 841 stored procedures.
The modernization effort faced significant challenges due to limited documentation, minimal understanding of the system's operational logic, and the complexity arising from its numerous software components. Relying solely on the raw source code, CLPS completed this large-scale modernization within seven months with a team of just over 20 developers. By leveraging AI, the Company achieved a
Implementation Approach: Agile Development and AI
CLPS adopted an agile project management methodology, breaking down functional modules into multiple manageable iterative phases. Compared to traditional waterfall methodology, this approach proved effective for AI-assisted development. Despite the challenges, the team progressively deciphered the system logic by using AI-generated semi-completed program code and pseudocode. The developers then leveraged the pseudocode to better understand the program logic and complete the programming of the partially generated code.
This iterative approach enabled parallel development, testing, and functional verification. Converted portions could be validated while other functions were still being transformed, significantly reducing deployment risks and allowing early detection and correction of potential deviations in AI's code interpretation, thereby avoiding major failures in later project stages.
CLPS attributes the success of AI-assisted development to three core elements: an AI-methodology trained team, a structured AI strategy, and advanced AI models. The modernization project included a cross-functional team of a project manager, AI experts, source code experts, Java/React developers, and testing specialists, ensuring that all members fully embraced the new paradigm of AI-assisted development.
In addition, the project implemented a systematic AI strategy to address the complexities of undocumented legacy systems, guiding code decomposition for AI processing, validating AI outputs against hidden business rules, and assuring consistency across hundreds of interdependent functions.
Multiple Values from Technology to Business
The modernization project delivered measurable benefits across two key areas:
Technical Outcomes:
- Direct conversion of VB and MS Access backend processes to Java codes with a
70% automation rate. - Successful transformation of VB and MS Access UI into React components.
- Smooth database migration from MS SQL to PostgreSQL in AWS Cloud.
- Automated generation of documentation for previously undocumented system logic.
Economic Benefits:
- Project cycle shortened from an estimated 24 months to 7 months.
- Labor input reduced by over
60% , leading to millions of dollars in direct cost savings. - Significant reduction in future system operation and maintenance costs.
Future Prospects
The AI-assisted development model validated by CLPS is highly scalable, applicable across industries with legacy systems built on traditional programming languages such as VB, COBOL, and Report Program Generator (RPG). This framework, combining AI technology, professional expertise, agile methodologies, and strategic execution, provides a replicable solution for modernizing traditional systems.
Mr. Raymond Lin, Chief Executive Officer of CLPS, stated, "We have demonstrated that AI can achieve efficient transformation even when a developer has limited knowledge of a system. This offers a new, highly efficient solution for upgrading thousands of similar projects. For banks and other industries still relying on outdated, undocumented but operational systems, this success demonstrates a practical path to solving the long-standing challenge of legacy system modernization."
About CLPS Incorporation
CLPS Incorporation (NASDAQ: CLPS), established in 2005 and headquartered in
Forward-Looking Statements
Certain of the statements made in this press release are "forward-looking statements" within the meaning and protections of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements with respect to the Company's beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance. Known and unknown risks, uncertainties and other factors, which may be beyond the Company's control, may cause the actual results and performance of the Company to be materially different from such forward-looking statements. All such statements attributable to us are expressly qualified in their entirety by this cautionary notice, including, without limitation, those risks and uncertainties related to the Company's expectations of the Company's future growth, deployment in the AI technology sector, performance and results of operations, the Company's ability to capitalize on various commercial, M&A, technology and other related opportunities and initiatives, as well as the risks and uncertainties described in the Company's most recently filed SEC reports and filings. Such reports are available upon request from the Company, or from the Securities and Exchange Commission, including through the SEC's Internet website at http://www.sec.gov. We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date hereof, or after the respective dates on which any such statements otherwise are made.
Contact:
CLPS Incorporation
Rhon Galicha
Investor Relations Office
Phone: +86-182-2192-5378
Email: ir@clpsglobal.com
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SOURCE CLPS
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