Asia Pacific

Japan’s largest bank uses photons to prevent IT outages

17 March 2025
3 minutes
Japan’s MUFG Bank, in collaboration with NTT DATA and NTT WEST, has successfully tested an ultra-low latency, high-bandwidth data centre interconnection using the IOWN All-Photonics Network (APN).
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The breakthrough demonstrated live IT system migration between multiple data centres with less than one second of downtime, which is seen as a major breakthrough for financial system resilience.

The test also showcased long-distance synchronous replication of database management systems between locations up to 2,500 km apart, proving the capability of photon-based networking to enhance disaster recovery and IT reliability.

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Banks and financial institutions face unique challenges, including regulatory compliance, system performance limitations, and the need for uninterrupted service delivery. Ensuring fast data transfers and minimal downtime is crucial for reliable, disaster-resistant financial systems.

Tom Winstanley, CTO and head of new ventures at NTT DATA UK&I said: ‘The financial industry is undergoing huge changes in its services and infrastructure.

“This transformation is driven by the growing global demand for innovative financial solutions that align with social progress.

“Our work with MUFG and IOWN’s technology makes these advancements possible.’

By leveraging geographically dispersed data centres, financial institutions can reduce risks, but effective mechanisms are needed to manage real-time data transfer and infrastructure recovery.

MUFG and NTT DATA have been working to ensure that IOWN APN meets these next-generation financial system demands.

A 2024 white paper from the IOWN Global Forum outlined how IOWN technology can solve digital transformation challenges in finance.

A technical document released in February 2025 provided an implementation model and served as a blueprint for the recent proof-of-concept (PoC).

To validate the technology, MUFG, NTT DATA, and NTT WEST conducted two key tests:

Hidehiko Tanaka, head of technology and innovation at NTT DATA said: “The financial industry is undergoing a rapid technological evolution, driven by the tremendous demand for next-generation financial services, and spurred by the rapid surge of technical innovation globally.

“Our collaboration with MUFG and NTT WEST aims to enable this transformation and make next-generation financial services a reality through the use of IOWN technology.”

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