Investment Rating - The report does not explicitly state an investment rating for the industry Core Insights - Financial technology has become a crucial engine for structural reform in financial supply and enhancing financial services to the real economy, driven by rapid digital technology evolution [9][13] - The banking sector's core system construction is one of the most mature and comprehensive areas in terms of digitization, with a strong focus on high performance, stability, and security [9][13] - The shift towards domestic technology solutions in banking IT infrastructure is gaining momentum, with cloud computing and distributed databases becoming more prevalent [9][10] Summary by Sections 1. Industry Challenges - Traditional banking core systems face multiple challenges, including inability to adapt to intense market competition and slow product innovation cycles [35][39] - Existing systems struggle with differentiated interest rate pricing and are often based on outdated technology architectures [41][42] - High concurrency demands from online activities expose the limitations of traditional centralized architectures, necessitating a shift to more flexible systems [43][44] 2. Distributed Transformation - The report emphasizes that distributed transformation is an inevitable path for upgrading banking core systems, moving from centralized to distributed architectures [54][56] - The transition involves breaking down monolithic systems into microservices and independent modules to enhance agility and responsiveness [57][58] 3. Construction Models - Two primary construction models for new banking cores are identified: technical migration and planning reconstruction, with the latter being more challenging and requiring collaboration across departments [76] - The report outlines a three-dimensional six-stage model for guiding the planning and reconstruction of new core systems [76][80] 4. Key Features of New Core Systems - New core systems should exhibit high availability, performance, scalability, and ease of maintenance, while also being self-controllable and open to integration [59][61] - The design should focus on customer-centric approaches, enabling rapid innovation and differentiated service capabilities [65][66]