From vision to reality: By going beyond agility and core to "0", CLPS facilitates financial institutions' digital transformation and application modernization

HONG KONG, April 21, 2023 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (Nasdaq: CLPS), today announced that it recently attended the Fintech Forum co-sponsored by the Digital Economy Development and Research Committee of Shanghai Higher Education Association and Master of Software Engineering Alumni Association of Fudan University in Pudong New Area, Shanghai, China. Mr. Jingwei Sun, Senior Vice President of CLPS, presented an in-depth analysis of how financial institutions can leverage the power of technology for digital transformation.

Fintech is gradually evolving to achieve digitally-native financial services.

Based on the evolution of technology application, the financial IT architecture and technical process are undergoing rapid and agile development in three stages: IT 1.0, IT 2.0 and IT 3.0. IT 1.0, which is implemented in physical architectures such as mainframes and midrange computers, is still prevalent in several traditional financial institutions. However, most of the financial institutions today are running IT 2.0, managing projects and technologies in an agile manner under X86 architecture. At the same time, some of the leading financial firms have adopted IT 3.0 in the form of cloud-native infrastructure and agile DevOps for microservice management.

How far does digital transformation go in the financial industry? Digitalization, according to Mr. Sun means sustaining original force through external competition. As a fintech services provider, the objective is to provide financial institutions with digitally-native financial services.

The goal of building digital native ecosystem is not simply applying new technology, but adopting well to the particularities of the financial industry and the uniqueness of each institution. Taking the industry's high emphasis on security into consideration, he explained that CLPS implements security-related specifications to the DevOps process to achieve DevSecOps or development, security, and operations. Due to the limited number of applications in the financial system that must be linked to other systems and the inability to take advantage of the microservice component, CLPS drives the development of service atomization and market-fit capability for financial institutions, as well as the development of a service bridge. Microservices can then be distributed quickly and flexibly across applications by using standardized methods and strategies.

A change of mind is the antidote to all difficulties and worries.

Digital natives present a gratifying and attractive image, and financial institutions are eager to capitalize advanced technologies in order to grow and improve their business. On the other hand, they are concerned about the return on investment of digital ecosystem construction, as well as falling into a wait-and-see game towards the industry, which creates many difficulties and concerns for digital advancement.

The lack of IT service providers who are capable of making overall plans causes such hesitations, according to Mr. Sun. He also added that the loss of confidence in their own IT technical architecture, production, and research capability can also be attributed to unagile IT architecture and inflexible management style.

Despite rapid technological advances, the finance industry does not change much. In this sense, the goal of fintech should not be to technologize traditional financial business but rather take a lead in the tech sector. Mr. Sun suggested that an IT department be changed from a cost-center to a value-center. An effective method to evaluate cutting-edge technologies is to establish a team dedicated to the task. To give financial institutions some flexibility in their choices, he recommended combining outsourcing with self-research to build efficient IT teams.

Core to "0", is it imminent or far off?

The agility and openness of digitally-native financial services enable financial institutions to better cope with market changes and capture opportunities. As the digital economy continues to develop, financial institutions have gradually shifted digital transformation as an alternative to enhance competitiveness to a top priority as a survival strategy.

A good example is the development of digital ecosystem of e-CNY, which is driving forward apace. e-CNY mainly serves small retail business' high-frequency transaction needs as a cryptocurrency. In the future, it is likely that it will be able to connect with retail and corporate banks outside the consumption scenario due to its orientation, recyclability, and traceability, along with more scenarios such as credit, insurance, securities, and agriculture. With e-CNY leaping from M0 and running through M1 and M2 of the money supply, the financial industry will be the focus of this trend, but at the same time, it also makes imperative that the banking system is capable of a high level of concurrency and scenario-based capability in order to subvert traditional ways and even go beyond agility.

As proof, Mr. Sun pointed out that CLPS had collaborated with a Chinese state-owned bank to promote e-CNY. People need a minimum of 100,000 TPS or transactions per second to receive e-CNY red packets, covering more than 50,000 scenarios, including restaurants and malls, among others. Moreover, as digital ecology expands, it will be necessary to deal with all types of temporary transactions in the future. Without an open architecture and agile digital native capability, which define the concept of core to "0" to a certain extent, such a large number of scenarios and transaction volumes will be difficult to link within banking services. By competing on the same platform, nevertheless, whoever builds digital-enabled capabilities and captures the market first will have the advantage.

As financial institutions enter the era of digital finance, IT architecture is also undergoing a dynamic evolution. With the help of cutting-edge technologies such as artificial intelligence, big data, cloud computing, intelligent marketing, blockchain, and Web 3.0, CLPS is well-positioned to maintaining continuous momentum for shaping digitally-native financial services. This can be achieved by integrating advanced concept changes and specific business scenarios in cooperation with the global financial industry.

About CLPS Incorporation

Headquartered in Hong Kong, CLPS Incorporation (the "Company") (Nasdaq: CLPS) is a global leading information technology ("IT") consulting and solutions service provider focusing on the banking, insurance, and financial service sectors. The Company serves as an IT solutions provider to a growing network of clients in the global financial service industry, including large financial institutions in the US, Europe, Australia, Southeast Asia and Hong Kong SAR, and their PRC-based IT centers. The Company maintains 18 delivery and/or research & development centers to serve different customers in various geographic locations. Mainland China centers are located in Shanghai, Beijing, Dalian, Tianjin, Xi'an, Chengdu, Guangzhou, Shenzhen, Hangzhou, and Hainan. The remaining eight global centers are located in Hong Kong SAR, USA, Japan, Singapore, Australia, Malaysia, India, and the Philippines. For further information regarding the Company, please visit: https://www.clpsglobal.com/, or follow CLPS on Facebook, LinkedIn, Twitter, and YouTube.

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, 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
Lenny Li
Public Relations Office 
Phone: +86-182-2192-5378
Email: [email protected]

SOURCE CLPS