Abstract
The development of Financial Technology (FinTech) in areas such as mobile Internet, cloud computing, big data, search engines, and blockchain technology have significantly changed the financial industry. FinTech is expected to overturn the traditional banking business model, forcing banks to upgrade and transform.This study adopts a comparative case study method to contrast and analyze the Industrial and Commercial Bank of China (ICBC) and Citibank. It analyzes the strategies, organizations, HR systems, and product innovations adopted by these two banks in response to the impact of FinTech. This paper proposes an “electric vehicle” mode for ICBC and an “airplane mode” for Citibank. Further, it describes the difficulties encountered by the Chinese banking industry and proposes some feasible ways to upgrade. “Technology power” will become the core competitive concept for the financial institutions of the future.
Highlights
The development of financial technology (FinTech) in areas such as mobile Internet, cloud computing, big data, search engines, and blockchains has significantly changed the financial industry, forcing traditional banks to transform and upgrade
Citigroup (Citi GPS 2016) researchers predicted that in the 10 years, FinTech innovation will reduce the number of employees in traditional banks by approximately one-third
This is based on the concept of devising a mobile Internet finance “battery” fitted to the original “bicycle.” The strategy corresponding to this mode is reflected in Industrial and Commercial Bank of China (ICBC)’s application of FinTech to traditional businesses, including cloud computing, big data, and mobile payment
Summary
Background The development of financial technology (FinTech) in areas such as mobile Internet, cloud computing, big data, search engines, and blockchains has significantly changed the financial industry, forcing traditional banks to transform and upgrade. This is based on the concept of devising a mobile Internet finance “battery” fitted to the original “bicycle.” The strategy corresponding to this mode is reflected in ICBC’s application of FinTech to traditional businesses, including cloud computing, big data, and mobile payment.
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