Inevitability and Pain Points of Digital Transformation

In the digital economy era, digital banking has become the core growth engine of the banking industry. Data for 2025 shows that global retail digital transactions account for over 90% of the total, with the online business substitution rate of Chinese banks exceeding 95% and the online credit ratio surpassing 70%. Digital transformation has become a necessity for the survival and development of banks. Despite industry-wide consensus on digitalization, disparities in transformation outcomes and digital capabilities remain across banks, leaving significant room for improvement.

Omni-channel

Deliver an integrated service experience across multiple customer touchpoints, including mobile terminals, computer terminals, and intelligent devices.

Ecosystem Openness

Accelerate connectivity with third-party sectors such as e-commerce, catering, and government services, build diversified financial scenarios, and expand the business ecosystem.

Competitiveness

Respond to competition from fintech companies by accelerating digital innovation and agile iteration.

Risk Control and Compliance

As digital business scales, banks must continuously strengthen compliance and risk control capabilities.

These challenges stem from technical debt accumulated by legacy systems, reflected in the following areas
High Architectural Coupling

Response speed and concurrent processing capacity fail to meet the agility and rapid iteration demands of digital businesses.

Limited Digital Architecture

Built around physical branches, these systems have limited capacity to handle digital business and lack openness.

Lengthy Implementation Cycles
and Elevated Risk

Legacy system constraints make digital transformation projects costly and slow, causing them to lag behind market and technology trends while introducing implementation risks.

Mainstream Models of Digital Transformation

Banks must carefully select transformation solutions based on their technical resources, infrastructure, investment capacity, and core business needs. The industry currently recognizes four mainstream implementation paths for digital transformation.

Optimization Model

Ncrementally enhance and optimize existing core systems to better support evolving digital business requirements.

Greenfield Mode

Establish an entirely new digital infrastructure, business system, and operating model from the ground up, independent of existing legacy systems, resulting in a parallel dual-system operating environment.

“Fusion” Mode

Drawing on extensive practical experience, MuRong has proposed an innovative model that integrates the strengths of both the Optimization and Greenfield approaches. By seamlessly interfacing with existing core systems, this model delivers an independent, robust digital middle- and front-office platform.

Reconstruction Mode

Fully reconstruct and replace legacy core systems while simultaneously building a new digital banking system and next-generation digital technology architecture.

Considering practical transformation objectives and investment constraints, MuRong recommends prioritizing the Greenfield Model and the “Fusion” Model. Both approaches offer controllable implementation cycles and costs, strike a balance between security and efficiency, support advanced architectures such as cloud-native and microservices, enable agile innovation, and facilitate leapfrog digital development.

Mainstream Models of Digital Transformation

Banks must carefully select transformation solutions based on their technical resources, infrastructure, investment capacity, and core business needs. The industry currently recognizes four mainstream implementation paths for digital transformation.

Previous
Optimization Model

Ncrementally enhance and optimize existing core systems to better support evolving digital business requirements.

Greenfield Mode

Establish an entirely new digital infrastructure, business system, and operating model from the ground up, independent of existing legacy systems, resulting in a parallel dual-system operating environment.

“Fusion” Mode

Drawing on extensive practical experience, MuRong has proposed an innovative model that integrates the strengths of both the Optimization and Greenfield approaches. By seamlessly interfacing with existing core systems, this model delivers an independent, robust digital middle- and front-office platform.

Reconstruction Mode

Fully reconstruct and replace legacy core systems while simultaneously building a new digital banking system and next-generation digital technology architecture.

Next

Considering practical transformation objectives and investment constraints, MuRong recommends prioritizing the Greenfield Model and the “Fusion” Model. Both approaches offer controllable implementation cycles and costs, strike a balance between security and efficiency, support advanced architectures such as cloud-native and microservices, enable agile innovation, and facilitate leapfrog digital development.

Best Practices of Digital Transformation Based On MuRong IDO
MuRong IDO Overview

MuRong IDO is an innovative, open digital banking system built on a "one digital middle office, multiple digital front offices" model. It runs on a cloud-native, microservice architecture that supports elastic scaling and delivers system security, agility, and openness. It provides omni-channel business support across multiple industries through standardized APIs and connects seamlessly with core banking systems worldwide, integrating legacy and new business operations on a single platform.

The core design of MuRong IDO is deliberately structured to balance the strengths of three mainstream digital transformation models:

Alignment with the Reconstruction Model: Provides next-generation technical architecture and core component capabilities

Greenfield Model: For banks starting fresh. MuRong IDO enables rapid deployment of a full digital banking system through a build-from-scratch, iterate-fast approach, cutting time-to-live and reducing implementation complexity.

Fusion Model: Existing Core Banking System + MuRong IDO, for banks that want to protect their existing technology investment while expanding digital capabilities.

Digital Solutions Adapting to Diverse Transformation Needs
Solution Objective

Layer MuRong IDO on top of the existing core banking system. Keep core functions running. Add digital capabilities without replacing what works.

Integration

MuRong IDO connects directly to the existing core banking system. Accounts, transactions, and core processing continue uninterrupted, with no large-scale replacement required.

“Fusion” Value

Protects long-term investment. Reduces replacement risk and transformation costs. Unifies online and offline customer experience. Delivers a smooth, low-disruption digital transformation.

Middle- and Front-Office Services

Deploy MuRong IDO as the digital middle and front office layer.

• Deliver D-KYC authentication, credit processing, and intelligent marketing.

• Support customer onboarding, online credit, online deposits, and inclusive finance alongside the existing core system.

• Enable omni-channel deployment across mobile banking, internet banking, agency banking, and open banking, with insurance as a value-added service.

Solution Objective

constraints and build a fully independent digital operation. Build a digital banking system that runs entirely independent of the legacy core, with full end-to-end processing handled by MuRong M5 and MuRong IDO.

End-to-End Digital Operations

The "core layer + middle and front office layer" model gives banks complete end-to-end digital capability. No legacy dependency. Full range of digital financial services, owned and operated independently.

Middle- and Front-Office Services

Deploy MuRong IDO as the digital middle and front office. • Deliver customer onboarding, D-KYC authentication, and intelligent marketing. • Support omni-channel processing across mobile banking, internet banking, agency banking, open banking, and insurance partnerships.

Core Digital
Business Support

Deploy MuRong M5 as the primary digital business processing engine.

• Cover account management, online deposits, online loans, multi-scenario payments, transaction clearing, digital product management, risk control, and compliance.

• Lightweight, distributed architecture with high concurrency and low latency, built for rapid iteration.

• Real-time data exchange and business collaboration with MuRong IDO.

Solution Objective

For banks making a clean break from legacy infrastructure and rebuilding on modern architecture.Replace the legacy core entirely. Build a new-generation core banking system from the ground up using cloud-native, microservice architecture, with omni-channel services and an open platform delivered at launch.

Core System Replacement

MuRong M5 replaces the legacy core with a modern, distributed, highly elastic system. It handles both branch and digital banking operations, scales on demand, iterates fast, and centralizes data and business management.

Middle and Front Office Services

MuRong IDO delivers omni-channel digital services across all customer touchpoints. Open APIs connect with third-party ecosystems to extend business reach.

Digital Solutions Adapting to Diverse Transformation Needs
Solution Objective

Layer MuRong IDO on top of the existing core banking system. Keep core functions running. Add digital capabilities without replacing what works.

Integration

MuRong IDO connects directly to the existing core banking system. Accounts, transactions, and core processing continue uninterrupted, with no large-scale replacement required.

“Fusion” Value

Protects long-term investment. Reduces replacement risk and transformation costs. Unifies online and offline customer experience. Delivers a smooth, low-disruption digital transformation.

Middle- and Front-Office Services

Deploy MuRong IDO as the digital middle and front office layer.

• Deliver D-KYC authentication, credit processing, and intelligent marketing.

• Support customer onboarding, online credit, online deposits, and inclusive finance alongside the existing core system.

• Enable omni-channel deployment across mobile banking, internet banking, agency banking, and open banking, with insurance as a value-added service.

Solution Objective

constraints and build a fully independent digital operation. Build a digital banking system that runs entirely independent of the legacy core, with full end-to-end processing handled by MuRong M5 and MuRong IDO.

End-to-End Digital Operations

The "core layer + middle and front office layer" model gives banks complete end-to-end digital capability. No legacy dependency. Full range of digital financial services, owned and operated independently.

Middle- and Front-Office Services

Deploy MuRong IDO as the digital middle and front office. • Deliver customer onboarding, D-KYC authentication, and intelligent marketing. • Support omni-channel processing across mobile banking, internet banking, agency banking, open banking, and insurance partnerships.

Core Digital Business Support

Deploy MuRong M5 as the primary digital business processing engine.

• Cover account management, online deposits, online loans, multi-scenario payments, transaction clearing, digital product management, risk control, and compliance.

• Lightweight, distributed architecture with high concurrency and low latency, built for rapid iteration.

• Real-time data exchange and business collaboration with MuRong IDO.

Solution Objective

For banks making a clean break from legacy infrastructure and rebuilding on modern architecture.Replace the legacy core entirely. Build a new-generation core banking system from the ground up using cloud-native, microservice architecture, with omni-channel services and an open platform delivered at launch.

Core System Replacement

MuRong M5 replaces the legacy core with a modern, distributed, highly elastic system. It handles both branch and digital banking operations, scales on demand, iterates fast, and centralizes data and business management.

Middle and Front Office Services

MuRong IDO delivers omni-channel digital services across all customer touchpoints. Open APIs connect with third-party ecosystems to extend business reach.

Core
Values Of
The
Solution

Omni-channel

Unified functions and experience across mobile apps, USSD, web, and physical branches. One-stop service, any channel, any time.

Emerging Technology Integration

AI and big data tools are built in and ready to use. Includes 24/7 customer service, personalized recommendations, intelligent risk control, and automated operations.

Agile Product Innovation

A rich product component library and visual configuration tools make product iteration fast. Teams can design, configure, and launch new products without lengthy development cycles.

High-Maturity Integration

Pre-configured interfaces for T24, FLEXCUBE, and BANCS. Seamless integration and data synchronization with leading global core banking systems, out of the box.

Open Ecosystem

Standardized APIs connect quickly to e-commerce, catering, government services, and insurance partners. Expand service boundaries and build a connected digital financial ecosystem.

Flexible Deployment

Choose SaaS cloud or on-premises. Both modes are fully supported.

Compliance and Risk Control

Built-in international compliance framework covering anti-money laundering, data security, and privacy protection. Digital operations stay compliant from day one.

Security Protection

Multi-layer security architecture with built-in risk control models, encryption, and early warning mechanisms. End-to-end secure operations across every transaction and touchpoint.

Core Values Of
The Solution

Omni-channel

Unified functions and experience across mobile apps, USSD, web, and physical branches. One-stop service, any channel, any time.

Emerging Technology Integration

AI and big data tools are built in and ready to use. Includes 24/7 customer service, personalized recommendations, intelligent risk control, and automated operations.

Agile Product Innovation

A rich product component library and visual configuration tools make product iteration fast. Teams can design, configure, and launch new products without lengthy development cycles.

High-Maturity Integration

Pre-configured interfaces for T24, FLEXCUBE, and BANCS. Seamless integration and data synchronization with leading global core banking systems, out of the box.

Open Ecosystem

Standardized APIs connect quickly to e-commerce, catering, government services, and insurance partners. Expand service boundaries and build a connected digital financial ecosystem.

Flexible Deployment

Choose SaaS cloud or on-premises. Both modes are fully supported.

Compliance and Risk Control

Built-in international compliance framework covering anti-money laundering, data security, and privacy protection. Digital operations stay compliant from day one.

Security Protection

Multi-layer security architecture with built-in risk control models, encryption, and early warning mechanisms. End-to-end secure operations across every transaction and touchpoint.

Key Implementation Guarantees
Key Implementation
Guarantees
MuRong delivers a comprehensive, end-to-end implementation framework through MDM (MuRong Delivery Methodology), which defines standardized project management practices and delivery specifications across the full solution lifecycle.
MDM introduces a phased approach to data migration and business cutover, with a strong emphasis on safeguarding uninterrupted operations, accurate data synchronization, and controlled system launch. By adopting a structured parallel operation, migration, and decommissioning model, MuRong effectively ensures business continuity, operational stability, and data security throughout the transformation process.
Real Results
As the second-largest bank in China, China Construction Bank faced persistent challenges stemming from legacy systems, including slow business innovation cycles and mounting pressure to process massive transaction volumes. In response, CCB partnered with MuRong Technology in 2019 to accelerate the development of a next-generation digital banking system.

MuRong delivered a secure, flexible, and open digital banking platform that enabled the comprehensive rollout of online financial services and effectively supported digital finance requirements across multiple industry scenarios. This transformation laid a solid foundation for large-scale innovation, high-concurrency processing, and ecosystem expansion.

Transformation Achievements

By 2024, the platform had supported the launch of more than 200 digital financial products, serving over 100 large enterprise clients and more than 80,000 merchants. Its application spans dozens of sectors, including e-commerce, new retail, automotive services, and government platforms.

The system successfully handled extreme peak transaction loads during major promotional events such as “618” and “Double 11” with zero service disruptions, while cumulative transaction volumes surpassed RMB 1 trillion. As a result, CCB significantly enhanced customer experience, reduced operational costs, and reinforced its leading position in the digital finance landscape.
As the third-largest bank in Kenya, NCBA faced structural constraints caused by slow legacy system responsiveness and limited product flexibility, which hindered the expansion of its digital business initiatives. To overcome these limitations, NCBA partnered with MuRong and adopted the Greenfield Model to drive a comprehensive digital transformation.

MuRong delivered a modern digital banking platform and Super App for NCBA, enabling end-to-end digital financial services, including customer onboarding, mobile deposits, online lending, digital payments, and intelligent marketing. This transformation significantly enhanced NCBA’s digital agility and positioned the bank as a leading benchmark for digital banking innovation across Africa.

Transformation Achievements

By 2024, NCBA’s digital business had achieved sustained annual growth of 20 to 30 percent, serving more than 68 million digital financial customers in Kenya.

At the same time, its digital banking footprint expanded rapidly beyond domestic markets into six additional African countries, including Tanzania, Rwanda, Uganda, Côte d’Ivoire, and Ghana. Through this expansion, NCBA has played a pivotal role in advancing inclusive finance across the region, delivering accessible and scalable digital financial services to a broader population.
KCB is the largest commercial bank by assets in East Africa. Constrained by legacy core banking systems, the bank faced challenges including slow business innovation, inconsistent customer experience, and limitations on cross-regional expansion. To address these issues, KCB partnered with MuRong and adopted the Fusion Model to advance its digital transformation agenda.

Built on MuRong IDO, the project rapidly delivered a modern digital banking platform while maintaining seamless collaboration with existing core systems through high-performance data interfaces. This approach achieved an effective balance between transformation speed and business continuity, enabling large-scale digital innovation without operational disruption.

Transformation Achievements

KCB’s digital banking services have been successfully rolled out across six markets, including Kenya, Tanzania, Burundi, South Sudan, Rwanda, and Uganda, serving more than 10 million users across the region.

The bank has established a diversified digital ecosystem encompassing online account opening, digital lending, money transfers, multi-scenario payments, value-added financial services, marketing enablement, and intelligent customer service. The platform supports multilingual operation and multi-theme personalized customization, significantly enhancing customer engagement across diverse markets.

Underpinned by a cloud-native and microservices architecture, the system enables elastic resource scaling, real-time transaction processing, and end-to-end operational monitoring. This transformation has set a benchmark for the smooth and scalable digital modernization of large commercial banks.
Real Results
Previous
As the second-largest bank in China, China Construction Bank faced persistent challenges stemming from legacy systems, including slow business innovation cycles and mounting pressure to process massive transaction volumes. In response, CCB partnered with MuRong Technology in 2019 to accelerate the development of a next-generation digital banking system.

MuRong delivered a secure, flexible, and open digital banking platform that enabled the comprehensive rollout of online financial services and effectively supported digital finance requirements across multiple industry scenarios. This transformation laid a solid foundation for large-scale innovation, high-concurrency processing, and ecosystem expansion.

Transformation Achievements

By 2024, the platform had supported the launch of more than 200 digital financial products, serving over 100 large enterprise clients and more than 80,000 merchants. Its application spans dozens of sectors, including e-commerce, new retail, automotive services, and government platforms.

The system successfully handled extreme peak transaction loads during major promotional events such as “618” and “Double 11” with zero service disruptions, while cumulative transaction volumes surpassed RMB 1 trillion. As a result, CCB significantly enhanced customer experience, reduced operational costs, and reinforced its leading position in the digital finance landscape.
As the third-largest bank in Kenya, NCBA faced structural constraints caused by slow legacy system responsiveness and limited product flexibility, which hindered the expansion of its digital business initiatives. To overcome these limitations, NCBA partnered with MuRong and adopted the Greenfield Model to drive a comprehensive digital transformation.

MuRong delivered a modern digital banking platform and Super App for NCBA, enabling end-to-end digital financial services, including customer onboarding, mobile deposits, online lending, digital payments, and intelligent marketing. This transformation significantly enhanced NCBA’s digital agility and positioned the bank as a leading benchmark for digital banking innovation across Africa.

Transformation Achievements

By 2024, NCBA’s digital business had achieved sustained annual growth of 20 to 30 percent, serving more than 68 million digital financial customers in Kenya.

At the same time, its digital banking footprint expanded rapidly beyond domestic markets into six additional African countries, including Tanzania, Rwanda, Uganda, Côte d’Ivoire, and Ghana. Through this expansion, NCBA has played a pivotal role in advancing inclusive finance across the region, delivering accessible and scalable digital financial services to a broader population.
KCB is the largest commercial bank by assets in East Africa. Constrained by legacy core banking systems, the bank faced challenges including slow business innovation, inconsistent customer experience, and limitations on cross-regional expansion. To address these issues, KCB partnered with MuRong and adopted the Fusion Model to advance its digital transformation agenda.

Built on MuRong IDO, the project rapidly delivered a modern digital banking platform while maintaining seamless collaboration with existing core systems through high-performance data interfaces. This approach achieved an effective balance between transformation speed and business continuity, enabling large-scale digital innovation without operational disruption.

Transformation Achievements

KCB’s digital banking services have been successfully rolled out across six markets, including Kenya, Tanzania, Burundi, South Sudan, Rwanda, and Uganda, serving more than 10 million users across the region.

The bank has established a diversified digital ecosystem encompassing online account opening, digital lending, money transfers, multi-scenario payments, value-added financial services, marketing enablement, and intelligent customer service. The platform supports multilingual operation and multi-theme personalized customization, significantly enhancing customer engagement across diverse markets.

Underpinned by a cloud-native and microservices architecture, the system enables elastic resource scaling, real-time transaction processing, and end-to-end operational monitoring. This transformation has set a benchmark for the smooth and scalable digital modernization of large commercial banks.
Next
“MuRong is a Superstar in the Field of Digital Banking”
--- By Paul Russo, CEO of KCB Group
“MuRong is a Superstar in the Field of Digital Banking”
--- By Paul Russo,
CEO of KCB Group