Performance Analysis Of Digital Transformation Of Retail Business Of Ping An Bank

The development of interest rate liberalization and financial disintermediation in China increases the profit pressure of commercial banks.Due to the characteristics of low cost,high return and risk dispersion,retail business can balance the risks of public business and inter-bank business,and retail business has gradually become the focus of profit contention of major commercial banks.With the increasing development of fintech and the personalized needs of customers,commercial banks are forced to accelerate the digital transformation of retail business and deepen the transformation progress of digital technology in the top-level strategy,organizational structure,product services and human resources.However,due to differences in asset scale of commercial banks,banks with larger asset scale have comparative advantages in digital transformation,so the progress of digital transformation among commercial banks is different.Considering the early implementation of retail digital transformation strategy,Ping An Bank has achieved more outstanding results than other joint-stock banks.This thesis selects Ping An Bank as the case study object,and summarizes the digital transformation measures for marketing,customer expansion,risk control,digital,cost control and organizational reform taken by Ping An Bank from 2016 to 2021.In terms of research methods: This thesis first uses the event study method to analyze the impact of digital transformation on the stock price of Ping An Bank,and finds that the stock price of Ping An Bank has increased significantly after the beginning of digital structure adjustment,which reflects the positive and optimistic attitude of the market towards digital transformation.Then it sorted out the important indicators of Ping An Bank’s retail business from 2014 to 2021,and found that the overall scale,customer acquisition ability,profitability and risk control ability of the bank’s retail business had been greatly improved before and after the digital transformation.Finally USES the factor analysis method,compares the nine joint-stock banks,including ping an bank retail business change the growth of the important indexes in 2016-2021,respectively to expand capacity,a passenger capacity,profitability and risk control ability for individual joint-stock bank,found that ping an bank represented by retail business deposit and lending index expansion ability best,at the same time,the customer acquisition ability score related to the expansion of deposit and loan scale is also relatively high.This thesis analyzes the transmission mechanism between Ping An Bank’s digital transformation and performance change from the perspectives of customer group,risk management and product development,and concludes that Ping An Bank achieves the overall improvement of retail business performance through three ways.First,low cost to reach individuals and small and micro customers to increase the scope of service.Second,create more diversified and personalized products based on user data to meet market demand.Third,artificial intelligence background assessment risk to reduce personal loan delinquency rate.By reviewing the successful experience of Ping An Bank’s transformation,this thesis puts forward four suggestions for commercial banks facing the transformation needs,including attaching importance to the cultivation of fintech,enhancing long-term strategic thinking,focusing on customer needs and strengthening risk control.Four suggestions are put forward for Ping An Bank,including increasing investment in fintech,improving application level of API mode,strengthening integration of non-interest business and digitalization,and continuously monitoring erosion risk of bad debts.Based on the annual report data provided by various banks,this thesis conducts theoretical research and empirical analysis on the digital transformation of Ping An Bank’s retail business,combs out the correlation between its digital measures and the performance improvement achieved,and obtains enlightenment and reference beneficial to the digital transformation and upgrading of banks.