| On the one hand,China’s economic environment has continued to improve in recent years and the overall income level of the people has increased,resulting in a rich variety of consumer needs and multiple levels,especially in the areas of consumer finance and social life.Many fintech companies have keenly seized the opportunity to enter the traditional commercial bank retail sector,attracting customers through flexible and diverse retail financial products and weakening the stickiness of traditional commercial banks to their retail customers.The penetration of fintech in traditional commercial banks is particularly critical due to the emergence of many problems such as insufficient innovation and serious homogenisation of traditional commercial banks’ retail products,among which Changsha Bank is represented by a stagnant share of the retail financial market,with dismal sales performance and business development entering a bottleneck without a breakthrough and commercial banks’ profitability not growing.On the other hand,the introduction of policies at the national level,such as the "Guidance on Promoting the Standardised and Healthy Development of the Platform Economy" and the "Financial Technology(Fin Tech)Development Plan(2019-2021)",provides policy protection for the comprehensive development of Fin Tech and provides greater impetus for commercial banks to develop Fin Tech.At the same time,the total retail sales of consumer goods in China continues to climb,and the upgrading of consumption has brought about huge market space,which is also a good time for the transformation and development of the retail business of commercial banks in China.Faced with the opportunities and threats in the development of retail business,Changsha Bank started its retail business transformation in 2016,taking relative measures from the client side,product side,channel side and risk control side by applying financial technology.Analysis of Changsha Bank’s financial indicators in terms of profitability,security and growth capacity reveals that: the four major transformation measures have worked together to drive a steady increase in the profitability level of the retail business.The transformation measures on the customer side have significantly increased Changsha Bank’s retail deposit and loan scale,growth rate and customer acquisition capability,and significantly improved its growth capability;the transformation measures on the product side have focused on optimising Changsha Bank’s operating income structure and retail income and loan structure,and the optimisation of retail consumer loan turnover has contributed to a steady rebound in retail asset turnover;the transformation measures on the channel side have expanded the number of customers in channels such as mobile banking and online banking The transformation measures on the channel side can reduce the cost of retail business while expanding the number of customers and transaction scale of channels such as mobile banking and online banking;the transformation measures on the risk control side have significantly improved the quality of bank assets.Changsha Bank’s retail business transformation measures have been effective and its value creation capability has continued to improve,ensuring that its overall performance is better than that of some urban commercial banks due to the combined effect.Changsha Bank’s many transformation measures for its retail business through fintech have driven steady improvements in its retail business segment and overall financial performance,and are of good relevance.In the face of the opportunities and threats brought by the development of financial technology,urban commercial banks should pay attention to "long-tail" customers when transforming their retail business,vigorously promote wealth management product innovation and the integration of online and offline channels,and strengthen investment in technology to enhance intelligent risk control. |
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