Transforming securities operations with AI-powered agility
Overview
A leading European clearing house partnered with us to modernize the legacy systems that supported their critical securities operations. These systems, built decades ago, were becoming difficult to maintain and were limiting the organization’s ability to scale and innovate.
We helped the client transition to a modern, AI-ready technology platform built with flexible, modular components. Using our AI Force suite of solutions, the client was able to simplify the discovery of system functionalities, automate large portions of the code conversion and speed up testing. This reduced manual effort by 65% while successfully transforming millions of lines of old programming into a modern, agile system designed for real-time insights and operational efficiency.
The Challenge
The client’s older systems were complex, with limited documentation on how they worked. This made it difficult to update or improve them without risking disruptions. Additionally, there was skepticism about using AI as a support tool for modernization and the tools available for the project were rigid and outdated. The lack of input from business experts further slowed progress.
To overcome these challenges, a smarter, AI-powered approach was needed one that combined deep technical expertise with a strong understanding of the client’s business needs.
The Solution
To address these challenges, we implemented a phased, AI-driven modernization strategy with the following key solutions:
- Smart discovery tools that automatically analyzed and documented how the old systems worked, with approximately 90% accuracy
- A new technology blueprint that reimagined the systems into smaller, more manageable modules that could easily interact with each other
- Automated code conversion, turning legacy programming into modern, easy-to-maintain code
- AI-generated documentation and tests, which helped ensure the new system met business requirements with 80% test coverage
- Integrated transformation pipeline powered by the AI Force suite, enabling seamless handoff between discovery, code generation and testing
- Custom-built AI tools that addressed the specific needs of the client’s old technology environment, while ensuring data security
The Impact
The transformation delivered significant impact across operational, financial and strategic dimensions:
- 65% effort reduction in code conversion, benchmarked against QSM industry standards
- 50%+ efficiency gains in test creation and documentation through automation
- 100% code conversion with verified functional equivalence and successful non-production deployment
- Accelerated SME onboarding through clear, AI-generated specifications and insights
- Significant cost savings by reducing manual work and maximizing automation
- A future-ready, scalable system supporting real-time decision-making and enterprise-wide AI integration
- A repeatable modernization model for large-scale legacy systems
Beyond the Numbers
Beyond technical advancements, this engagement fundamentally changed how the client approached modernization. By automating documentation and code generation, developers gained a clear and reliable understanding of legacy functionality. This reduced guesswork and avoided costly rework. It also enabled business SMEs to participate earlier and more effectively through AI-generated specifications and workflows, bridging the gap between technical and functional teams. As a result, decisions became faster, collaboration more seamless and the transition to a modern AI-ready architecture significantly more confident and efficient.
Celebrating Success
This success story reflects more than just technical achievement. It highlights how GenAI-powered modernization can revitalize legacy systems and create a scalable future-ready architecture. Insights from The Blueprint to AI-led Operating Model report show that organizations adopting product-aligned operating models are accelerating AI investments and realizing 4x higher returns. This highlights the value of strategic structures in amplifying business outcomes.
In addition, 47% of leaders expect GenAI to enhance product lifecycle management through improved progress tracking, risk predictability and innovation. Nearly all decision-makers see a future where AI is embedded across all toolsets. These findings align closely with the client’s journey of transforming more than 5 million lines of COBOL into modular Java microservices, cutting manual effort by 65% and enabling enterprise-wide AI adoption.
Everest Group further validated HCLTech’s leadership by recognizing us as a Leader in Application Management Services in their PEAK Matrix Assessment 2024. This recognition demonstrates how HCLTech’s AI-led approach helps enterprises modernize confidently, accelerate innovation and build operations that are ready for the future.
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