Rapid reconstruction of a Mission Critical foreign exchange Settlement System
With the advancement of digital transformation and rapid changes in the social environment, an approach that allows for the agile creation and continuous improvement of IT systems has come into focus. In this context, Low-Code software development tools that enable internalization using close resources in a short time are gaining attention.
Mizuho Research & Technologies adopted GeneXus to rebuild the foreign exchange settlement system operated by Mizuho Bank. By automating and improving the efficiency of screen, application, database, and testing process development, they successfully built the system in a short time.
Below is an interview with Masaharu Hagiwara, manager of Department 2 of the IT Division at Mizuho Research & Technologies about the impact of Low-Code software development platforms in building Mission Critical Systems.
There are Low-Code platforms focused on solutions that support large-scale Critical Systems. These platforms not only cover development but also the delivery, operation, testing, and debugging of applications, covering the entire system lifecycle.
A good example is the foreign exchange settlement system reconstruction project at Mizuho Bank, completed in April 2022. This system handles the centralized settlement of yen funds when banks, including megabanks, conduct foreign exchange transactions. Since the system manages foreign exchange yen settlements 24/7 and is one of the organization’s Mission Critical Systems, stable operation is essential due to the social impact a failure could have.
On the other hand, Mizuho Bank’s foreign exchange settlement system had been in place for around 30 years since its creation, using an old architecture that included PL/I, distributed servers, and terminal applications. This posed the challenge of securing technicians to develop a new system in line with technological changes. Furthermore, due to years of system integration, the modules had expanded, making program maintenance difficult and extending development time.
We decided it was time to build a new system that was not limited by conventional architecture or development methods."
The old system was based on an accounting mainframe, which doubled operational and maintenance costs when linked to the distributed system built in Java. The number of engineers capable of handling PL/I was decreasing every year, and reliance on a fixed development partner further increased costs.
They emphasized the adoption of open technologies that would ensure operational stability and cost reduction; another keyword was "insourcing."
“The old system heavily relied on vendors for development, operation, and maintenance. With the new system, we wanted to be involved in development and operations to accumulate knowledge. The solution that emerged was the use of Low-Code software development tools," says Mr. Hagiwara.
In the tool selection process, several solutions were compared. The two key points were whether they could meet the functional requirements of the existing system and whether they would truly reduce work efforts.
GeneXus received the highest evaluation in this process. It is a Low-Code development platform that automatically generates applications and databases based on the requirements defined by the developer using its own inference engine.
The initial policy of increasing internal team involvement in development and operations was realized as expected by reviewing roles with external partners.
"We were able to achieve the initial goal thanks to a development team that worked as a single unit, with us understanding and making decisions about the system’s content while collaborating with external partners. Java engineers quickly became familiar with handling GeneXus, allowing us to secure up to 200 members from different partners, which was very helpful,” says Mr. Hagiwara.
In the development of foreign exchange settlement system components, such as "administrative processing," "IF" (interfaces), "accounting," and "common functions," the automatic generation of programs significantly reduced manual coding. Human errors were also minimized, and productivity improved considerably.
Despite being a massive project to rebuild a core system, the amount of business logic coding was reduced to only 20% compared to traditional development from scratch, and in some cases, the reduction was even greater, reaching only a few percentages of the system’s total.
As for screen creation, design and color customizations based on user requests were incorporated to prevent human errors. Since the user interface (UI) of the screens is crucial to ensuring the accuracy of the bank staff’s work, input from the staff was integrated to further improve precision. Although a large number of screen transitions and complex customizations were expected, the coding and unit testing (UT) process for approximately 700 screens was finally completed in just six months thanks to the use of GeneXus, according to Mr. Hagiwara.
The screens from the old system, which users were familiar with, were replicated using GeneXus’s screen layout feature. Although complex screen transitions and other customizations were expected to require a lot of effort, GeneXus’s high productivity ultimately proved itself.
Another great feature of GeneXus is its ability to automate testing at various levels of the application. In this project, the GeneXus testing tool—GXtest—was also introduced, contributing to increased productivity and ensuring application quality.
"Additionally, the impact analysis feature incorporated in GeneXus allowed us to identify the effects of any system changes before implementing them, which was a key factor in ensuring operational stability," adds Mr. Hagiwara. The new system was launched in April 2022. To date, it has operated stably without any reported issues.
The existing system, which was divided between an accounting host and a distributed system, was integrated into an open system based on Java. The "IF," "accounting," and "administrative processing" components were combined to handle yen settlement in foreign exchange transactions between banks, operating 24/7, 365 days a year.
"This project has demonstrated GeneXus’s power in developing and maintaining Mission Critical Solutions," explains Mr. Hagiwara.
In the future, the company plans to continue improving its internal development skills while considering the possibility of integrating GXtest and Jenkins to achieve a continuous integration and automated testing cycle, covering everything from construction to regression testing.
"By better understanding the characteristics of development with GeneXus, we believe we can further improve our productivity. We also hope to continue receiving strong support from GeneXus Japan," concludes Mr. Hagiwara.
Below is an interview with Masaharu Hagiwara, manager of Department 2 of the IT Division at Mizuho Research & Technologies about the impact of Low-Code software development platforms in building Mission Critical Systems.
Building a system without the limitations of conventional development methods
It is generally believed that Low-Code software development tools are only used for small-scale application development, but this is a misconception.There are Low-Code platforms focused on solutions that support large-scale Critical Systems. These platforms not only cover development but also the delivery, operation, testing, and debugging of applications, covering the entire system lifecycle.
A good example is the foreign exchange settlement system reconstruction project at Mizuho Bank, completed in April 2022. This system handles the centralized settlement of yen funds when banks, including megabanks, conduct foreign exchange transactions. Since the system manages foreign exchange yen settlements 24/7 and is one of the organization’s Mission Critical Systems, stable operation is essential due to the social impact a failure could have.
Why was it necessary to rebuild the foreign exchange settlement system?
“When we began considering this project in 2016, in the field of foreign exchange settlements, the SWIFT international payment messaging network announced a major reform in which the traditional message format (MT) would gradually be converted to the ISO 20022 (MX) standard format. Additionally, with the rise of fintech, new payment methods utilizing new technologies were being considered. We anticipated that changes in the external environment would continue to grow significantly.On the other hand, Mizuho Bank’s foreign exchange settlement system had been in place for around 30 years since its creation, using an old architecture that included PL/I, distributed servers, and terminal applications. This posed the challenge of securing technicians to develop a new system in line with technological changes. Furthermore, due to years of system integration, the modules had expanded, making program maintenance difficult and extending development time.
We decided it was time to build a new system that was not limited by conventional architecture or development methods."
The old system was based on an accounting mainframe, which doubled operational and maintenance costs when linked to the distributed system built in Java. The number of engineers capable of handling PL/I was decreasing every year, and reliance on a fixed development partner further increased costs.
Adoption of GeneXus to improve productivity
To solve these problems, Mizuho Bank decided to rebuild the foreign exchange settlement system. Starting in April 2016, together with Mizuho Research & Technologies they began considering the next architecture, defining requirements, and selecting new development methods.They emphasized the adoption of open technologies that would ensure operational stability and cost reduction; another keyword was "insourcing."
“The old system heavily relied on vendors for development, operation, and maintenance. With the new system, we wanted to be involved in development and operations to accumulate knowledge. The solution that emerged was the use of Low-Code software development tools," says Mr. Hagiwara.
In the tool selection process, several solutions were compared. The two key points were whether they could meet the functional requirements of the existing system and whether they would truly reduce work efforts.
GeneXus received the highest evaluation in this process. It is a Low-Code development platform that automatically generates applications and databases based on the requirements defined by the developer using its own inference engine.
Achieving Operational Stability in a Mission Critical System
As mentioned at the beginning, operational stability was crucial for a system with significant social impact in case of failure. "The important thing is to avoid system failures and human errors. Additionally, the ease of making system changes was also a key point. GeneXus met these elements," reveals Mr. Hagiwara.The initial policy of increasing internal team involvement in development and operations was realized as expected by reviewing roles with external partners.
"We were able to achieve the initial goal thanks to a development team that worked as a single unit, with us understanding and making decisions about the system’s content while collaborating with external partners. Java engineers quickly became familiar with handling GeneXus, allowing us to secure up to 200 members from different partners, which was very helpful,” says Mr. Hagiwara.
In the development of foreign exchange settlement system components, such as "administrative processing," "IF" (interfaces), "accounting," and "common functions," the automatic generation of programs significantly reduced manual coding. Human errors were also minimized, and productivity improved considerably.
Despite being a massive project to rebuild a core system, the amount of business logic coding was reduced to only 20% compared to traditional development from scratch, and in some cases, the reduction was even greater, reaching only a few percentages of the system’s total.
As for screen creation, design and color customizations based on user requests were incorporated to prevent human errors. Since the user interface (UI) of the screens is crucial to ensuring the accuracy of the bank staff’s work, input from the staff was integrated to further improve precision. Although a large number of screen transitions and complex customizations were expected, the coding and unit testing (UT) process for approximately 700 screens was finally completed in just six months thanks to the use of GeneXus, according to Mr. Hagiwara.
The screens from the old system, which users were familiar with, were replicated using GeneXus’s screen layout feature. Although complex screen transitions and other customizations were expected to require a lot of effort, GeneXus’s high productivity ultimately proved itself.
Another great feature of GeneXus is its ability to automate testing at various levels of the application. In this project, the GeneXus testing tool—GXtest—was also introduced, contributing to increased productivity and ensuring application quality.
"Additionally, the impact analysis feature incorporated in GeneXus allowed us to identify the effects of any system changes before implementing them, which was a key factor in ensuring operational stability," adds Mr. Hagiwara. The new system was launched in April 2022. To date, it has operated stably without any reported issues.
The existing system, which was divided between an accounting host and a distributed system, was integrated into an open system based on Java. The "IF," "accounting," and "administrative processing" components were combined to handle yen settlement in foreign exchange transactions between banks, operating 24/7, 365 days a year.
"This project has demonstrated GeneXus’s power in developing and maintaining Mission Critical Solutions," explains Mr. Hagiwara.
In the future, the company plans to continue improving its internal development skills while considering the possibility of integrating GXtest and Jenkins to achieve a continuous integration and automated testing cycle, covering everything from construction to regression testing.
"By better understanding the characteristics of development with GeneXus, we believe we can further improve our productivity. We also hope to continue receiving strong support from GeneXus Japan," concludes Mr. Hagiwara.