TITLE:
Digital Transformation of Traditional Chinese Banks
AUTHORS:
Ziyun Shu, Shuk-Yu Tsang, Taoxuan Zhao
KEYWORDS:
Digital Giants, CCB (China Construction Bank), QR Code, Sensor, App, Digital Platform Services
JOURNAL NAME:
Open Journal of Business and Management,
Vol.8 No.1,
December
9,
2019
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.