On February 25, 2025, Amazon Web Services Japan (AWS Japan) hosted a financial strategy briefing where Mizuho Bank's Deputy CIO, Kenbun Yamamoto, disclosed the bank's transition of part of its core system, "MINORI," to AWS. This shift is aligned with AWS Japan's vision, established in 2021, to serve as a transformative partner in financial business, under what they call "Vision 2025."
AWS Japan has focused on four main strategies to reshape business models beyond traditional frameworks, including Banking-as-a-Service (BaaS) models deployed with over twenty partners, customer engagement innovation through personalized applications like "Hamagin 365" at Yokohama Bank, enhancing resilience by implementing core systems to start operating by 2024 at Fukushima Bank, and fostering talent and organizations aligned with transformational efforts at Yamanashi Chuo Bank.
Norisuke Tsuruida, the Executive Officer overseeing the Financial Services Division at AWS Japan, stated, "Through our four years of efforts, we have received words from customers and regulatory agencies about the need for us to take our responsibility as social infrastructure seriously. Our new 'Vision 2030' aims to provide Japan's economy and society with stable foundations." This next phase includes:
- Expansion of investments in strategic domains utilizing generative AI to accelerate IT asset modernization.
- Rapid launch of new businesses partnering with over 240 AWS services to boost development speed.
- Development of innovation talent through practical digital skill training aligned with organizational maturity.
- Further enhancement of resilience through AWS’s infrastructure and support.
Following Tsuruida's remarks, Yamamoto provided insights on Mizuho Bank's enterprise initiatives, emphasizing, "Since the merger of three banks, we have experienced three major system failures. We are currently working on achieving stable operations." Mizuho began considering AWS's services back in 2018, fully implementing them by 2019, and has since expanded usage across over 200 systems, including market, international, channel, and information systems.
Yamamoto highlighted, "We've started engaging with business digital transformation since last year." He noted the growing number of AWS-certified professionals within the IT department, which comprises around 1,300 individuals holding AWS certifications out of about 4,000 total. Notable is the hybrid architecture built over eight years for the MINORI system, which combines open platforms with mainframes, ensuring compatibility with the public cloud.
Discussing the choice of AWS, Yamamoto mentioned, "We have longstanding partnerships. We aim for improved resilience, aligning with the shift from traditional mainframe environments toward hybrid ones, accepting system disruptions as inherent risks. Another reason is leveraging external resources." Currently, some functions of MINORI are actively migrating to AWS, including open systems for accounting and development environments.
Finally, Yamamoto expressed expectations from AWS Japan: "With our medium-term management plan aimed at defining the future decade, we’re backcasting our strategies. For innovative technology to proliferate, resilience as part of the societal foundation is imperative. Our targets resonate with AWS Japan’s strategies. To strengthen our operational base, we need agility and specialized IT personnel. This aligns with the items outlined under 'Vision 2030,' emphasizing AI's effective use as we move forward together using AWS’s platform."
On another front, Daito Trust Construction Co., Ltd. has launched what has become the first example of their carbon offset service for financial institutions, achieved via collaboration with Shizuoka Bank and Shizuoka Prefecture. Specifics of the project, scheduled for the "TECH BEAT Shizuoka 2024" occurring from July 25 to 27, 2024, will feature the provision of 30 tons of CO2 credits to support offsetting efforts.
This initiative is part of Daito's broader push to promote carbon credits, leveraging the Japanese government's J-Credit System, which officially certifies reductions of greenhouse gases. The real estate company's endeavor is aimed at tackling climate change and supporting carbon neutrality, which revolves around renewable energy utilization and the introduction of energy-efficient systems, incorporating them within financing mechanisms for ZEH rental housing.
The participation of Shizuoka Bank as the operational committee secretariat for the event strengthens the collaboration between the financial sector and sustainable development efforts through meaningful environmental participation.
Between these transformative developments, Iyo Bank's recent announcement on February 28, 2025, encapsulated another notable pause within Japan’s financial system evolution. The bank disclosed it has suspended the development of its next-generation core banking system, which it was collaborating on with Hitachi. The bank aims to conduct thorough evaluations following this decision, referred to internally as the "reflection" process.
These instances reflect the dual narratives shaping the future of Japan's financial technology sector—groundbreaking advancements alongside pivotal challenges. While financial institutions like Mizuho Bank and Shizuoka Bank are innovatively adapting their systems to embrace new technologies and sustainable practices, others, like Iyo Bank, are observing caution during significant transitions.
Overall, Japan’s financial technology and systemic developments are cogently demonstrating both resilience and rapid innovation, poised to forge pathways for more digitally driven and environmentally conscious banking landscapes.