Abstract
The paper examines the status quo of traditional Chinese banks under the attack of the new digital giants in China—Alibaba (Alipay) and Tencent (WeChat). Traditional banks urgently need their own analysis and corresponding changes in order to stand out in the tide of the times and not be oppressed by digital giants. Banks have also launched their own e-commerce platform, but there are many shortcomings. Based on the analysis of characteristics of digital platforms, the paper put forward corresponding suggestions to banks in the ecosystem to better cope with future opportunities and challenges. Using a case study approach showing the traditional services provided by CCB’s mobile banking (China Construction Bank, one of the famous traditional banks in China) and corresponding improvements, the paper concludes that traditional Chinese Banks can protect themselves in four ways—emphasizing more on digital platform services, designing credit card platform, cooperating with third party on the platform, and establishing E-commerce and bank APP for users.
Highlights
In recent years the banking industry has seen a large influx of new digital players
Using a case study approach showing the traditional services provided by CCB’s mobile banking (China Construction Bank, one of the famous traditional banks in China) and corresponding improvements, the paper concludes that traditional Chinese Banks can protect themselves in four ways—emphasizing more on digital platform services, designing credit card platform, cooperating with third party on the platform, and establishing E-commerce and bank APP for users
We study and discuss how the traditional banks should survive in the current market environment, and provide a certain opinion on the future development of the traditional banks and the digital transformation of other traditional financial industries
Summary
In recent years the banking industry has seen a large influx of new digital players. Today’s traditional banking industry divides business scenarios into online and offline. It is worth adding sensors to the business of traditional banks, integrating two-dimensional codes into credit card payment, using user information of third-party platform to provide relevant financial services, and creating an e-commerce platform belonging to the bank itself to provide online shopping services for users. We will further improve the function design of APP in online banking to meet the basic business needs of customers. We study and discuss how the traditional banks should survive in the current market environment, and provide a certain opinion on the future development of the traditional banks and the digital transformation of other traditional financial industries
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