[Asia Economy Reporter Kwangho Lee] K-Bank announced on the 8th that it is transitioning its core banking system from Unix to Linux.
IT systems in financial institutions such as banks consist of the core banking system, which handles direct financial transactions with customers including deposit and loan services and foreign exchange operations; the channel system, which manages non-face-to-face channels such as call centers and partner information linkage; and the information system, which stores, analyzes, and manages banking data.
Since last year, K-Bank has been promoting the transition of some remaining Unix-based systems to Linux, starting with the information system. By the first half of this year, it completed the Linux transition of the simple payment system within the core banking system, and last month, it also transitioned the core database (DB) and card application (app) to Linux. During this process, the core DB was switched during minimal overnight hours, and the card app was transitioned without any downtime.
K-Bank is the first in the industry among existing commercial banks to switch an operating system to Linux. Most commercial banks still use Unix for their core banking systems due to stability concerns.
In comparison, Linux offers advantages in speed and openness. Recently, the capability to use open-source software has emerged as a key factor in the IT competitiveness of financial institutions, highlighting Linux’s openness. Stability, which was previously questioned, has now been verified, leading to a rapid increase in financial institutions adopting Linux.
K-Bank plans to complete the Linux transition of all systems?including core banking, information, and channel systems?by the end of next year through the Linux transition of the remaining banking apps.
Once the transition to Linux is complete, K-Bank expects to reduce costs by approximately 30% compared to the previous Unix system. Improvements in processing speed are also anticipated through more efficient use of existing server space. Despite a recent surge in customers, with simultaneous connections increasing up to 10 times, K-Bank continues to provide stable service.
Additionally, since cloud services are Linux-based, using Linux enables easy migration to the cloud without restrictions on transaction and data processing. K-Bank plans to leverage the Linux transition as a stepping stone to ultimately migrate its systems to the cloud, dramatically improving the customer experience.
K-Bank also plans to accelerate its transformation into a platform business operator based on this system transition. Through expanding its financial platform business, K-Bank is pursuing differentiation from existing internet banks. It is engaging in platform businesses such as partnerships with Upbit, open banking, linked securities accounts, linked loan services, and credit management services.
Cha Daesan, Head of IT, said, "This system transition has provided K-Bank with an opportunity to leap forward as a digital financial platform business operator," adding, "We will contribute to customer satisfaction by providing faster and more stable services."
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