Digital Transformation Of Ping An Bank And Its Impact On Operational Performance

Under the background of interest rate liberalization and inclusive financial policy orientation,the interest rate spread of commercial banks has narrowed and the competition among commercial banks has increased.It is difficult to make profits only by traditional business model;Under the impact of internet finance,the intermediary position of commercial banks has been greatly challenged.In the situation of internal and external troubles,commercial banks can break the current situation and maintain their competitiveness only by using financial technology for digital transformation.At present,China’s commercial banks have gradually realized the importance of digital transformation.Ping An Bank clearly put forward the digital transformation strategy in 2016,opening the curtain of its digital transformation.This paper adopts the case study method and takes Ping An Bank as the research object to deeply explore the impact of its digital transformation on business performance.Firstly,by combing the digital transformation process of Ping An Bank,this paper analyzes its digital transformation measures;Secondly,by constructing a time series model,this paper explores the impact of Ping An Bank’s digital transformation on its operational performance,in which the comprehensive operational performance of Ping An Bank calculated by factor analysis method is taken as the explained variable;The digital transformation degree as explanatory variable is measured by text mining method--using the Jieba in Python to count the word frequency of digitization in the interim report and annual report of Ping An Bank.Finally,in order to further explore the impact path of Ping An Bank’s digital transformation on its operational performance,this paper studies and analyzes it from six aspects: customer base,deposit business,loan business,profitability,risk management ability and innovation growth ability.Based on the case study of Ping An Bank’s digital transformation,this paper draws relevant conclusions:(1)Ping An Bank has taken top-down,point-to-surface digital transformation measures.First of all,Ping An Bank has clearly put forward the digital transformation strategy,focusing on retail business in the early stage of digital transformation;Secondly,Ping An Bank strives to operate customers and carry out product development and innovation centered on customers;Finally,Ping An Bank strengthens its data capacity to realize data-based operation;Ping An Bank is building an open bank to enhance its customer acquisition ability.(2)The degree of digital transformation of Ping An Bank has a significant positive impact on its operational performance.(3)Ping An Bank’s digital transformation measures affect its business performance through the following paths: enhancing the ability to obtain customers,optimizing the quality and structure of assets and liabilities,strengthening profitability,risk management ability and innovation and growth ability.Finally,based on the successful digital experience of Ping An Bank,this paper provides relevant suggestions for other commercial banks on how to carry out digital transformation.