Analysis of Commer cial Banks’ Digital Transformation Driven by Fintech

Abstract

This article reviews the literature related to the digital transformation of commercial banks driven by financial technology. Against the backdrop of the rapid rise of cutting-edge technologies such as cloud computing, big data, blockchain, and artificial intelligence, traditional service delivery methods relying on branches and manual operations by commercial banks have become difficult to adapt to customers’ demands for convenient, personalized, and real-time financial services. On the other hand, China’s economy is transitioning to a stage of high-quality development. In this process, commercial banks need to further enhance their service efficiency and strengthen service coverage capabilities. Consequently, commercial banks must confront competitive pressures from internet financial institutions and accelerate their digital transformation. Meanwhile, the development of financial technology also provides guarantees and assistance for the smooth progress of commercial banks’ digital transformation. Therefore, China‘s commercial banks are facing a critical period of digital transformation. This article begins by explaining the core connotations of financial technology and bank digital transformation, then analyzes the current status and main characteristics of bank digital transformation, focuses on various issues faced by the current bank digital transformation. Finally, it provides an outlook on the direction of subsequent related research and puts forward corresponding suggestions, aiming to provide guidance for China’s commercial banks to overcome the constraints in digital transformation and achieve high-quality development empowered by digitalization.