Analysis Of The Effect Of Retail Digital Transformation Of China Merchants Bank

As a representative of traditional financial institutions,commercial banks are facing the crisis of compressed profit margins in recent years with the promotion of financial disintermediation and interest rate marketization,while Internet and financial technology enterprises give full play to their latecomer advantages and enter the financial business in the form of cross-border operations,constantly impacting the intermediary status of commercial banks,and the fierce interbank competition and the impact of the digital economy era have made the traditional business operation model unsustainable.Therefore,in order to break the current business difficulties,enhance their market competitiveness as soon as possible,and create new business growth points for development,commercial banks have focused on retail business with high-yield and low-risk characteristics.This paper takes China Merchants Bank,which was the first to propose a retail digital transformation strategy in China,as the research object,and then after combing through domestic and foreign literature,this paper recognizes the important role of financial technology in the digital transformation of commercial banks,and after having a certain understanding of the relevant concepts of digital transformation of commercial banks,the current situation of digital transformation of commercial banks,the challenges and pain points they face,and the relevant theoretical basis,this paper carries out a research on the digital transformation effect of China Merchants Bank’s retail business,with the aim of "answering the questionnaire" of CMB on to find a solution to the problem.First of all,this article sorts out the development history of China Merchants Bank,understands the basic situation of China Merchants Bank and understands the situation of China Merchants Bank when making its transformation decision.Secondly,this paper analyzes the digital transformation measures of China Merchants Bank from three aspects:transformation strategy,thought transformation and transformation path.Then,from the aspects of stock price impact,business scale,asset structure,customer acquisition ability,profitability,risk control ability and innovation ability,the improvement of digital transformation on the multi-directional capability of China Merchants Bank was analyzed.In order to display the effect of China Merchants Bank’s digital transformation more intuitively,the factor analysis method was used to evaluate the data indicators of China Merchants Bank in the past years after the start of digital transformation,and output the score and ranking.Finally,after studying and analyzing the factors that may play an important role in the transformation process of China Merchants Bank,some suggestions are put forward for other commercial banks,especially small and medium-sized commercial banks,based on the experience of China Merchants Bank.After the case study of China Merchants Bank,this paper concludes:(1)China Merchants Bank has adopted a transformation strategy from part to whole and all-round,and has realized the leap from electronic banking to digital China Merchants Bank and Fin Tech bank.(2)Under the guidance of the transformation strategy of actively absorbing the Internet model and experience,the digital transformation of China Merchants Bank’s retail business is significantly effective,which has significantly improved the capabilities of China Merchants Bank in all aspects,and various capability indicators are among the best.(3)China Merchants Bank’s relatively successful retail digital transformation benefits from a consistent and long-term transformation strategy,which attaches importance to the strategic position of Fin Tech and the advanced concept of customer-centricity.Finally,based on the experience of China Merchants Bank,this paper puts forward several suggestions for other commercial banks in the process of transformation.