Research On The Motivation And Performance Of China Merchants Bank’s Digital Transformation

During the 14th Five Year Plan period,China took the digital economy as the focus of development,emphasized promoting the organic integration of digital technology and industry,and promoted the digital transformation of industry.In this context,commercial banks have carried out digital transformation,but the digital transformation of commercial banks is still in the primary stage of development,and commercial banks lack experience in transformation strategy and implementation path.This paper selects China Merchants Bank,which proposed to carry out digital transformation and build a "financial technology bank" earlier in China,as the research object,uses the case analysis method to analyze the motivation of its transformation,and summarizes the measures of China Merchants Bank’s digital transformation from the perspectives of technology,management and products into carrying out digital infrastructure,deepening management reform,building a digital financial ecosystem,and building a comprehensive evaluation index system of digital transformation,Research on the performance of China Merchants Bank’s digital transformation.The research found that:(1)the motivation for the digital transformation of China Merchants Bank is comprehensive.Among them,the external drivers are mainly the reduction of interest margin income brought by financial supervision and interest rate marketization,the increasingly diversified financial needs of residents due to income increase,and the dangers and opportunities brought by cross-border competition of Internet companies.The internal motivation is mainly to optimize the internal needs of the business structure and its own customer relationship advantages and strategic guidance.(2)Cross border operation is an effective attempt for commercial banks to expand off balance sheet business,which helps to deal with the penetration of Internet enterprises into financial business,and can effectively improve the comprehensive performance of commercial banks.(3)The introduction of user quality indicators is the key to the success of commercial banks’ digital transformation,which can endow commercial banks with special strategic competitiveness.At the same time,when evaluating the comprehensive performance of commercial digital transformation,it is necessary to introduce new indicators such as app cumulative users,APP unit user business transaction volume,APP monthly active users(MAU),asset management scale(AUM)and so on to evaluate user quality indicators.Finally,this paper suggests that when carrying out digital transformation,commercial banks should change their thinking,optimize the organizational structure,carry out digital infrastructure,and carry out cross-border operation in combination with their business advantages.Pay attention to the maintenance of user quality in the process of transformation;When evaluating the comprehensive performance of transformation,we should also pay attention to the strategic competitiveness formed by the high viscosity and high quality of users.The research done in this paper aims to help commercial banks carry out digital transformation with high quality,and make some contributions to the case study of enriching the motivation and performance of commercial banks’ digital transformation.