To enhance digital competitiveness, city commercial banks can start from these aspects

Mondo Workplace Updated on 2024-01-30

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Author: Wan Mu.

At the end of October, the first financial work conference put forward the goal of "accelerating the construction of a financial power", and clarified the strategic deployment of "doing a good job in science and technology finance, green finance, inclusive finance, pension finance, and digital finance".

The digital transformation of finance has long been an industry consensus. The 14th Five-Year Plan outlines the need to steadily develop fintech and accelerate the digital transformation of financial institutions. With the deepening of the application level of emerging technologies in the financial field, the digital transformation of the banking industry has been significantly accelerated, and technology is accelerating the development of the banking industry.

As an important part of the banking system, city commercial banks have vigorously promoted digital transformation in recent years, and have performed well in the integration of business and digital through the two-wheel drive of capital and talents. City commercial banks are comprehensively improving the level of digital and intelligent development through a series of measures, and have achieved the goal of reducing costs and increasing efficiency and high-quality development.

The digital era has brought multiple opportunities for city commercial banks, one of which is the optimization of customer experience. The original intention of the establishment of the city commercial bank is to serve the local economy, small and micro enterprises, and the needs of urban and rural residents, and its business and regional economic development promote each other. On the basis of combining local resources, urban commercial banks integrate digitalization into scenarios such as rural revitalization, industrial upgrading, and new consumption development, so as to meet the diversified needs of local customers. Through big data and artificial intelligence technology, city commercial banks are able to achieve a higher level of personalized services. This means being able to gain a deep understanding of local customer needs and preferences and tailor financial products and services accordingly to increase customer satisfaction. At the same time, by leveraging digital channels such as mobile apps and online banking, city commercial banks are able to provide customers with more convenient and efficient banking services, thereby enhancing customer stickiness.

Another important opportunity lies in the upgrading of risk management. Digital technology helps monitor risk in real-time and strengthen anti-fraud and anti-money laundering capabilities by leveraging analytics and machine learning models to identify anomalous transactions. This helps to protect the assets of customers and banks, and improves overall risk management. At the same time, by using big data and artificial intelligence technology to improve the credit assessment process, city commercial banks can more accurately assess the credit risk of borrowers, reduce the non-performing loan ratio, and improve the efficiency of loan approval.

In addition, the digital age has also given rise to the development of innovative financial products and services. City commercial banks can develop more convenient and secure digital payment solutions, such as mobile payment and e-wallets, to meet the diverse payment needs of customers. In addition, exploring the application of blockchain technology in cross-border payment and assetization is expected to improve transaction efficiency and security, and bring more opportunities to city commercial banks.

In recent years, the investment in fintech of listed banks has continued to increase, and the overall growth rate has been relatively high, and the investment scale of joint-stock banks, urban commercial banks and rural commercial banks has been significantly differentiated. It can be seen from the financial reports of various listed banks that most of the leading city commercial banks have broken the conventional investment of fintech funds accounting for about 3% of operating income, and have continuously increased the proportion of fintech investment as a whole. With the continuous growth of investment, the digital service capabilities of city commercial banks will be greatly improved. On the other hand, city commercial banks need to pay attention to the introduction and training of scientific and technological talents, strengthen the supporting construction of scientific and technological talents in terms of talent recruitment, training mechanism, career planning, etc., and continue to expand the digital coverage of marketing, products, operation and maintenance. Increasing investment in science and technology resources and training of professionals can help city commercial banks comprehensively improve their technology and data capabilities, and effectively promote the implementation of digital finance strategies.

Zhu Bin, General Manager of the Internet Finance Department of Changsha Bank, delivered a speech on the theme of "What are we thinking about when banks encounter digitalization again?" held on November 30Speech. Zhu Bin said that digitalization is a matter of the future for banks, and everyone will have their own answer to how to do a good job in digitalization. But cognition is not the ceiling, and it is the resource endowment that can determine how much to do. To create a popular product, the premise is to have a horse racing system and data-driven mechanism that can produce popular products. High-quality development is to create value for customers, in order to achieve self. Data governance is always on the way, and it is the key to promote governance with use, and in the era of digitalization, it is better to do wrong than not to do it. So when banks encounter digitalization again, it's not about what we're thinking, it's about what we're doing.

Editor-in-charge: Fang Jie.

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