Research On China Merchants Bank’s Digital Transformation Under The Background Of Financial Technology

With the continuous development of digital economy and fintech,emerging things such as digital currency,intelligent customer service and mobile payment have emerged one after another.To some extent,they have had an impact on human production and life,and have impacted traditional commercial banks.Therefore,commercial banks under the traditional mode need to find new development breakthrough points.Under the strong impact,the profit margin of banks is shrinking,and the traditional customer acquisition and profit model can no longer support the long-term development of banks.At the same time,with the advent of the digital age,people have higher and higher requirements for financial services,and it is difficult to accurately grasp their needs only by relying on traditional methods.Therefore,Chinese traditional banks must use financial technology to continuously explore a road of digital transformation,in order to keep up with the requirements of the development of The Times,so as to enhance their market competitiveness.This paper intends to select China Merchants Bank,which has a high digital level,as the research focus,discuss and summarize relevant transformation experiences of universal significance,in order to put forward some referential suggestions for other commercial banks,especially joint-stock banks,in the process of digital transformation,so that they can better integrate into the digital economy and society and obtain long-term development.This paper consists of six parts: firstly,it introduces the background and significance of the research,combs the relevant literature on fintech and digital transformation at home and abroad,and elaborates on fintech,digital transformation and relevant theories(the Long tail theory,financial innovation theory,smile curve theory)that have an impact on digital transformation.Secondly,it analyzes the effect of fintech on the development of commercial banks from the positive and negative aspects respectively,and analyzes the effect of fintech on the digital transformation of commercial banks from the four aspects of policy,competition,technology and customer acquisition.In the context of the influence of fintech and digital transformation,China Merchants Bank has made use of its advantages accumulated over years of development to transform itself for three times from the aspects of strategy,organizational structure and product innovation.After several years of development,it has significant advantages in digitization.Finally,factor analysis is used to test the overall effectiveness of China Merchants Bank’s development,and horizontal comparison is made with other representative banks.It can be concluded that China Merchants Bank has a higher degree of digitalization under the support of fintech.From the development experience of China Merchants Bank,This paper puts forward the following policy recommendations: first,deepen digital cognition,clear strategic positioning;Second,cultivate fintech talents to lay the foundation for digital transformation;Third,accelerate the connection between finance and science and technology,and promote the optimization of banking business processes;Fourth,promote the construction of internal control platform and strengthen digital linkage;Fifth,establish a financial technology regulatory system to prevent and control financial data risks.