CLPS Incorporation Leverages AI for Successful Legacy System Modernization at a Major Hong Kong Bank
HONG KONG, Sept. 11, 2025 /PRNewswire/ -- CLPS Incorporation (the "Company" or "CLPS") (NASDAQ:CLPS), today announced the successful modernization of a 30-year-old legacy mortgage system for a major Hong Kong bank, leveraging artificial intelligence (AI), including client-specified models like Microsoft Copilot. This achievement marks a significant breakthrough for CLPS in applying AI to complex system modernization, providing a replicable model for fintech solutions.
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 70% automation rate in system code conversion, successfully transforming the legacy VB applications and MS Access database programs to a modern Java/React/PostgreSQL technology stack. This process ensured business continuity while completing a comprehensive upgrade of the technical architecture. In contrast, a project of this scale using traditional methods would typically require 40–50 developers and two years to complete.
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 Hong Kong, is at the forefront of driving digital transformation and optimizing operational efficiency across industries through innovations in artificial intelligence, cloud computing, and big data. Our diverse business lines span sectors including fintech, payment and credit services, e-commerce, education and study abroad programs, and global tourism integrated with transportation services. Operating across 10 countries worldwide, with strategic regional hubs in Shanghai (mainland China), Singapore (Southeast Asia), and California (North America), and supported by subsidiaries in Japan and the UAE, we provide a robust global service network that empowers legacy industries evolve into data-driven, intelligent ecosystems. For further information regarding the Company, please visit: https://ir.clpsglobal.com/, or follow CLPS on Facebook, Instagram, LinkedIn, X (formerly 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, 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: [email protected]
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SOURCE CLPS