Research On The Practice And Effect Of Digital Transformation Of Retail Business Of China Merchants Bank

With the acceleration of interest rate marketization and financial digitization process,the integration of digital technology and finance has gradually deepened,and the development of Internet financial institutions has gradually diversified the financial needs of customers.The business development and profitability of traditional banks have been greatly impacted.The number and quality of bank customer groups and the dependence of customers on banks have been declining.At the same time,the development of digital technology has also brought a new development direction to banks.Commercial banks explore new profit growth points through digital transformation and adjust business structure to reduce competitive pressure.Affected by the COVID-19 epidemic,bank customers are more inclined to contactless financial services,which puts forward requirements for financial institutions such as the banking industry to accelerate digital transformation.In addition,the " Guidance on the Digital Transformation of Banking and Insurance Industry " issued by the China Banking and Insurance Regulatory Commission in 2022 provides a clearer direction for the digital transformation of commercial banks in the field of business management.In the business of commercial banks,retail business has gradually become the core business of the future development of the banking industry with the advantages of low risk,high income and large profit contribution,and has become the focus of the digital transformation process of commercial banks.In China’s joint-stock commercial banks,China Merchants Bank has carried out digital transformation earlier and more successfully.The development of its retail business is more prominent among many commercial banks and is known as the king of retail.Therefore,this thesis takes China Merchants Bank as the research object,analyzes the practice and effect of digital transformation of China Merchants Bank ’s retail business,finds out the existing problems in the process of transformation,and puts forward countermeasures and suggestions to solve the problems,so as to provide reference for the digital transformation of other commercial banks.This thesis uses case analysis,comparative analysis,empirical analysis and normative analysis to analyze the practice and transformation effect of China Merchants Bank ’s digital transformation of retail business.In terms of writing logic,this thesis first briefly introduces China Merchants Bank,expounds the motivation of China Merchants Bank ’s digital transformation and analyzes the current situation of digital transformation.Secondly,it analyzes the practice process of China Merchants Bank ’s retail business digital transformation and the problems in the transformation process.Then,in the analysis of the digital transformation effect of China Merchants Bank ’s retail business,this thesis constructs a factor model by using SPSS25.0,and selects the bank ’s net profit,total retail loans,number of retail customers,bank size,non-interest income of retail business and cost-income ratio as factor variables to analyze the effect of digital transformation of China Merchants Bank ’s retail business.In addition,the specific effect analysis of the financial index data of China Merchants Bank ’s total customer volume,product scale,operating efficiency and risk control ability is carried out.Finally,through the above analysis,we draw conclusions and put forward countermeasures and suggestions.Through research and analysis,the following conclusions are drawn : First,China Merchants Bank puts the digital transformation of retail business in an important position of transformation.Through the digital transformation of retail business,China Merchants Bank ’s operating performance and future growth ability are improved.Second,China Merchants Bank attaches importance to product development and innovation,is committed to providing differentiated financial products and services,and uses digital transformation to broaden the channels for obtaining customers and increase the total retail customer base of China Merchants Bank.Third,China Merchants Bank uses digital transformation to optimize the income structure,reduce the non-performing loan ratio,reduce the operating risk,and improve the risk control ability of China Merchants Bank.Through the conclusions drawn,the following countermeasures and suggestions are proposed : China Merchants Bank should base on its own advantages,clarify the strategic position of retail,innovate retail products,and provide differentiated services for the financial needs of different customers;China Merchants Bank should increase the introduction of talents,expand the bank ’s advantages in product innovation research and development and customer service;pay more attention to the construction of risk control system.China Merchants Bank has also brought great risks while using digital transformation to improve its operating efficiency.Therefore,banks should use digital transformation to improve risk detection mechanism and prevention and control mechanism,improve data use efficiency and strengthen data protection ability.