Technology and Innovation Become the Primary Driving Force Behind the Digital Transformation of Retail Banking Center

Xinyi Sun

《Frontiers in Economics and Management》 3卷11期 (2022/11) Pp. 150-161

https://doi.org/10.6981/FEM.202211_3(11).0018

摘要

Along with the digital economical era arrival and the Internet popularization, it calls for the innovation and development of digital finance. With the rapid development and wide application of the novel information technology represented by artificial intelligence, blockchain, big data and cloud computing, traditional retail banks are facing challenges such as economic downturn, reduced credit demand and decline in asset quality. In the era of financial technology, will the traditional retail banking adapt or be replaced? How much will technological development affects the retail banking business? How is technology transforming and challenging banking institutions? As the current researches illustrated, the development of technology is by no means one of the reasons that hinder the development of retail banks, contrarily, the popularity of information technology has paved the way for major changes of retail banking centers. Therefore, with the support of technology and innovation, major retail banks have gradually improved their awareness of upgrading and transformation, and accelerated the pace of digital transformation to a deeper level. The traditional retail banking business model has opened up a new road, increased capital and talent investment in the science and technology platform, absorbed the mature science and technology of Internet finance, integrated the industry's own characteristics and customer needs, changed thinking, innovated technology, made every effort to build a Digital Banking ecosystem and achieve the strategic goal of bank digitization. This paper conduct research in the manner of literature review, case study and empirical analysis. On the basis of defining the concept of retail banking business, this paper summarizes the characteristics and development trend of retail banks. Then, taking the excellent retail banking business of domestic and foreign commercial banks (First Republic Bank of the United State and China CITIC Bank) as cases, a analysis of the current situation of retail banks and the motivation of digital transformation was carried out from three aspects: acquisition and operation of retail customers, business operation and open platform. While using DEA method to evaluate the effect of digital transformation of retail banks, we found its shortcomings in retail credit risk control and customer online transformation, thus putting forward feasible suggestions. Finally, sum up their experience and inspiration: take technology as the support and adhere to product innovation. Hopefully this paper can provide reference for the digital transformation of retail banking business of commercial banks.

關鍵字

Retail Bank ； Digital Transformation ； Technology ； Innovation

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