Study On The Development Of Digital Transformation Of Retail Business Of China Merchants Bank

With the rapid development of the Internet and digital economy,the banking industry in China has been hit by increasingly fierce competition from peers due to the increasingly diversified needs of consumers,and banks have begun to transform in order to be in a favorable position in the competition.Compared with other businesses,retail business has become a priority choice for domestic and international commercial banks to carry out digital transformation due to its large customer volume,relatively high profit contribution and low market risk.In addition,due to the continuous development of the global new crown epidemic,traditional offline business has been greatly affected,and commercial banks have tried to improve their own products and service models through different channels,using financial technology and other means,so as to be in the forefront of the digital transformation track.This paper selects China Merchants Bank,the "King of Retail",as the target of analysis,firstly introduces the three important transformation processes of China Merchants Bank’s retail business,then analyzes the motivation of China Merchants Bank’s transformation from internal and external environment,and summarizes the specific measures taken by its retail business in the process of digital transformation.In the study on the effect of digital transformation of China Merchants Bank’s retail business,we first analyze the impact of digital transformation on the stock price of China Merchants Bank by using the event study method,and find that the stock price of China Merchants Bank has increased significantly after the implementation of Retail Finance 3.0 transformation,reflecting the positive optimism of the market towards the digital transformation;then we use the factor analysis method to compare the growth of important indicators of retail business of 15 listed banks in the past five years.Based on the financial data related to retail business,it can be seen that the digital transformation has significantly increased the number of customers in China Merchants Bank’s retail business,and light customer acquisition has been implemented;the scale of retail business has been growing,and the core business has performed well.Finally,based on the financial data related to retail business,it can be seen that the digital transformation has significantly increased the number of customers of China Merchants Bank’s retail business and the implementation of light customer acquisition;the scale of retail business has been growing;the core business has performed well;the efficiency level of retail business has been improved and the bank has taken the leading position in the industry;the risk control capability of retail business has been enhanced and the overall asset situation has improved,which also positively affect the transformation effect of China Merchants Bank.Finally,based on the case study of China Merchants Bank’s transformation,it provides a reference for other banks to carry out digital transformation of retail business,i.e.,to clarify their strategic position,focus on business innovation and pay attention to risk prevention and control.