A Study On The Motivation,Path,and Effect Of Commercial Banks Using Financial Technology To Develop Retail Business

As China’s economy enters a new development trajectory,the traditional profit model of commercial banks may be difficult to sustain in the face of multiple impacts such as the domestic economic situation.Retail business has gradually become a new profit growth point and an important revenue generating engine for commercial banks.In this context,financial technology is becoming the focus of attention of financial institutions.On the one hand,due to the "crowding out effect",some Internet companies and professional companies providing financial services use financial technology to quickly seize users from commercial banks;On the other hand,it’s hard for commercial banks to develop retail business.Therefore,in the fierce competition in financial technology,commercial banks must act to redefine their development strategies.Based on a systematic review of relevant research literature on financial technology and retail business development,a case study was conducted with Zhejiang Commercial Bank as the research object.Firstly,it introduces the overview of Zhejiang Commercial Bank and the development status of retail business,financial technology strategy,and core technology applications.Then,it analyzes the reasons.The analysis shows that financial technology has had a positive impact on its retail business through products,marketing,risk control,and other channels,manifested in the expansion of the overall scale of customers,improvement of operational efficiency,and improvement of risk control capabilities.On the basis of case analysis,empirical analysis was conducted on the annual report data of 14 banks from 2012 to 2021,verifying that the development of financial technology has a significant improvement in the contribution of commercial banks to their retail business,and proving that commercial banks can develop their retail business through the application of financial technology.Finally,based on the current development of financial technology and the characteristics of commercial banks’ retail business,suggestions are given for commercial banks to apply financial technology to develop retail business.