1 thought on “The “King of Retail” China Merchants Bank’s digital transformation four rules”
Francisco
By 2014, China Merchants Bank faces corporate transformation challenges and key business challenges:
Cina Merchants Bank, founded in Shenzhen in 1987. It is the first company in China Merchants Group. It is the first company in China. The joint -stock commercial bank that is fully held by the corporate legal person is also the fifth largest bank in Mainland China.
In 2004, the overall domestic banking industry was still in the development of public business. The retail business has been sitting on a “cold bench”. China Merchants Bank refers to the digital transformation cases of all parties, and the first strategic transformation of the “against the trend” to start the first strategic transformation: retail transformation. As a result, China Merchants Bank’s retail business has also completed corporate changes, from childhood to large to strong, and officially ushered in the “outbreak era” of retail. In the following years, the number of personal bank customers increased from nearly 3 million to more than 43 million, an increase of 13 times. Driven by a series of new policies, China Merchants Bank entered the rapid rise channel. As of 2008, the scale of China Merchants Bank’s assets exceeded 1.5 trillion yuan. The annual surge is 6 times, becoming a joint -stock commercial bank that is second only to the four major state -owned banks.
. By 2014, the entire commercial banking industry, including China Merchants Bank, faces internal and external problems. On the one hand, the strong invasion of Internet finance impacted the banking business in the three aspects of deposit and lending. At the same time, the trend of financial disconnects has reduced the overall proportion of traditional banks at both ends of deposit and loan. On the other hand, bank products are serious, coupled with the rise in non -performing assets of banks, and marketization of interest rates. The old profit model is unsustainable. Based on the above two challenges, traditional banks need to change urgently, and need to explore new growth strategies and models in combination with digital transformation cases in other industries.
In the “Global Banking Report”, traditional banks are facing new digital competitors and customers to use digital banking services faster and wider. Digital threats may drag the industry’s net asset yield and reduce it to 5.2%.
The president of China Merchants Bank, Tian Huiyu, proposed that the transformation goal is light bank. One of the focus of transformation to light banks is to clear the digital strategy of “mobile priority”: external traffic, built -in platforms, user realization, and architecture transformation.
If China Merchants Bank took the lead in transforming from customer thinking to user thinking, redefining the boundary of financial services. For a long time, the bank has put the operating center on the card holding customers. After the customer behavior has caused changes in business logic, the bank should jump out of the account of the account and establish user thinking, especially to seize the new generation of young users and transform the closed financial service system to transform Become an open and scenario -oriented service ecology.
. The China Merchants Credit Card has always maintained a keen sense of smell on the market wind direction of young users. In foreign cooperation, with Wanda, Tencent, Baidu, Netease, JD.com, Didi Chuxing, OPPO, Tu, Tu The cooperation pattern of enterprises such as Niu, in real time tracking the dynamics of consumers in real time, followed up the head brands of various industries, and finally formed a win -win pattern of mutual resources.
In 2015, China Merchants Bank Credit Card and Wanda Film signed a comprehensive strategic cooperation, which will comprehensively cooperate in the fields of membership joint marketing, entertainment marketing, and offline business district marketing. Wanda Cinema is the number one cinema line in Asia. It has eight consecutive years of box office revenue, the number of viewers, and the market share of the country. It has mastered a large number of high -quality film resources in China. It can be said to be the “king” of Chinese films. Merchants Bank Credit Card users have high -end high -quality, strong consumption power, and most of them are young customers. The attributes and brand tone of China Merchants Bank Credit Card with Wanda Movies are important factor in cooperation between the two parties. The cooperation with Wanda Film can bring various rights and interests to the existing cardholders of China Merchants Bank, which will play a great role in promoting the brand image construction and user expansion of China Merchants Bank credit cards.
It also, China Merchants Bank also took the lead in turning from “card operation” to APP to turn to APP to start a new era of financial disconnection and eliminating bank cards. China Merchants Bank believes that bank cards are just a static product, and APP is an ecology. It has a rich, intelligent and convenient product experience. The model is lighter and covered. Upgrade, then cooperate with mainstream mobile phone brands (Apple, Huawei, Samsung, Xiaomi, etc.) to achieve omni -channel cooperation from software to hardware, and pursue the improvement of operating traffic.
It different from many banks as trading tools, China Merchants Bank builds APP into a platform for customer operations and services from a strategic height, and has comprehensively enhanced the user experience and creating a financial service ecological platform. Each branch of China Merchants Bank and offline outlets also cooperate with the APP strategy to transform accordingly, to play offline service tender and human cards, and finally create an online and offline omni -channel service system.
The natural interaction: In the past, due to technical restrictions, people were forced to adapt to the machine and must enter the language that the machines or text such as the text can be read. Now, the development of technology enables machines to understand the natural language of customers, including biological characteristics such as fingerprints, sounds, and face. On the one hand, optimize the bank service process. Natural language has the characteristics of “carrying” with you, and its application in the process of nuclear body eliminates a lot of past “necessary” links, including the opening, carrying, and changes of nuclear tools. At the same time, natural language has the characteristics of good anti -counterfeiting performance and uniqueness. Its outstanding performance in security will help the banking industry move towards a wider self -service and online service field.
The content driver: Due to technical and manpower restrictions, most of the previous banking services only stayed at the transaction level. Now it is an era of information explosion and excessive content. Most of the information received by customers is invalid. Banks need to help customers screen valuable high -quality content. This is what the China Merchants Bank APP is doing. At the same time, personalized content is provided according to customer needs. The digitalization of customer behavior enables banks to identify the different needs of each customer, thereby providing the most accurate personalized high -quality information, improving the intuitive experience of customers, and improving information acquisition efficiency.
Im smart services: First, intelligent recommendation. Data identify customer needs and actively recommend products, information and related services according to demand. Second, data products. By sorting and analyzing the massive financial data of customers, provide customers with data products to allow customers to understand themselves better. Third, intelligent services. Advanced technologies such as artificial intelligence are used to provide a part of the complicated services that can only be provided by artificially provided by machines. For example, the Capricorn Intelligence Investment Function in China Merchants Bank APP 5.0 can provide a combination investment recommendation service provided by the “target -income” requirements of the customer. Serve. Fourth, risk management. The digitalization of customer behavior allows the risk scenario to have more recognizable data marks. Through accurate analysis of customer behavior data, banks can intelligently identify customer transaction risks and take risk control countermeasures.
Is real -time interconnection: In the past, due to the restrictions of nuclear body technology, face -to -face cores became necessary. The existence of the special network blocks the obstacle -free circulation of information, and customers must go to the bank outlets to enjoy most bank services. At present, the development of remote nuclear technology and the openness of information transmission methods make real -time interconnection possible. The financial nucleus can occur in various scenarios, and bank services will be everywhere. For customers, banks are no longer a special financial place. Its services can be separated from the restrictions of outlets and special networks, and have the ability to penetrate the customer life scene. Many bank services that can only be obtained offline can now be satisfied online and outside finance.
The long -tailed customers who were ignored by banks because of income could not cover costs, and became the source of intercepting traffic by Internet companies. They seize various online and offline scenes and user entrances, and complete the closed -loop structure of the ecosystem through a small high -frequency payment business. Lost high -frequency payment business that maintains customer viscosity, banks are getting farther and farther from customers, especially young customers, and even have the danger of becoming product suppliers. What is even more worrying is that if you lose the favor of a new generation of young customers, the foundation of the “value customer” at the top of the bank pyramid will no longer be firm.
Igly, China Merchants Bank planned to plan in 2010, and launched a diversified scenario layout of Life APP 1.0 to cope with the potential crisis of young customers lost. Different from the China Merchants Bank APP, the Life APP focuses on opening up life, consumption, and finance. Taking “finance as the core, life as an extension”, creating a “quality life”, layout of life scenes, such as two votes, malls, tourism and other scenes. “Super Application” leap.
The China Merchants Bank has continuously expanded the boundaries of China Merchants Bank services through external extension scenes, and realized a closer connection of financial and living scenarios. After several years of hard work, China Merchants Bank has made good progress in rice tickets and movie tickets. As of the end of June 2018, 8.19 million customers used the service of Merchants Bank’s meal tickets and movie tickets, an increase of 30.66%over the same period last year. In the first half of this year, China Merchants Bank continued to focus on the scenes that are closely related to life, especially the scenario of transportation, and the overall momentum has developed well.
At the same time, the integration of intelligent technology allows the entire financial ecosystem of the China Merchants Bank to enter the time of the stream of monetization acceleration and improvement capacity.
The president of China Recruitment Bank, Tian Huiyu, mentioned, “As a bank with retail finance, the cost income ratio is already the third lowest in the country. After the extent, under the circumstances of other factors, or if other resources are used, the injection of technology will change the cost income curve and growth curve. ” The application of big data technology has greatly improved the efficiency and customer experience of China Merchants Bank, and the transformation rate of users has increased by 2.5 times. In the three -month pilot of 2018, China Merchants Bank found that the marketing success rate of complex wealth management products reached 13.47%, which was 4.7 times that of financial management managers’ marketing. In addition, several pairing groups (dual -gold customer bases, ordinary customer bases, and basic customer bases) are much higher than the marketing efficiency and output of no concentrated business customers. The 2018 annual report of China Merchants Bank shows that the operating income of 2018 was 248.555 billion yuan, an increase of 12.52%year -on -year; the net profit attributable to shareholders was 80.56 billion yuan, an increase of 14.84%year -on -year -this is the first time that China Merchants Bank has achieved operating income and net profit synchronization since 2014. “Double -digit growth”.
. As of the end of June 2018, there were 300 employees of the China Merchants Bank online direct operation team. It has achieved remote centralized operations on 3.86 million customers, while backstage supports 3,000 IT teams that support Merchants Bank APP.
The president Tian Huiyu also stated in internal speech: “People from China Merchants Bank’s future technology background will reach 30%-40%, or even 50%. Our benchmarking company is fintech company. “
In many places worthy of reference, the core and decisive impact on other factors are the team building and operation model around China Merchants Bank’s digital team. In summary of China Merchants Bank’s newly established online banking division, Digital GM has undertaken the leadership functions of China Merchants Bank’s digital innovation and transformation: participating in the planning company’s digital strategy and innovation projects, organizational and controlling various digital teams, from creativity to publishing digital products, launching, and launching and launching. Promote cross -department collaboration and decision -making (Internet financial leadership group) for innovative projects.
In the security supervision requirements of the banking system, the complexity of the banking system is high. The difficulty of developing the mobile banking app is not only in the APP itself, but also the opening of the background system. There are many difficulties in the cooperation of the corresponding departments, which is why the bank app user experience is very different -the difficulty from “having” to “excellent” is less difficult than from “none” to “yes”. Therefore In the construction, it is important to introduce the Internet banking division.
The key to China Merchants Bank’s innovation strategy — the foundation, heavy technology and new architecture
. The focus of retail business is transferred from bank card to APP, starting from user thinking; r; r;
2. Seeking cross -border cooperation and excavating long -tail users with external scenarios, headed by the order of operating traffic
1. Big data, intelligent driver, and intelligent use to improve the use Operating efficiency, reducing operating costs, and improving customer acquisition capabilities;
2. Use scientific and technological transformation and innovation of its own business model and service
. The company’s strategic emphasis on digital transformation concepts ;
2. Create an empowerment team and strengthen the consciousness of cross -department collaboration
By 2014, China Merchants Bank faces corporate transformation challenges and key business challenges:
Cina Merchants Bank, founded in Shenzhen in 1987. It is the first company in China Merchants Group. It is the first company in China. The joint -stock commercial bank that is fully held by the corporate legal person is also the fifth largest bank in Mainland China.
In 2004, the overall domestic banking industry was still in the development of public business. The retail business has been sitting on a “cold bench”. China Merchants Bank refers to the digital transformation cases of all parties, and the first strategic transformation of the “against the trend” to start the first strategic transformation: retail transformation. As a result, China Merchants Bank’s retail business has also completed corporate changes, from childhood to large to strong, and officially ushered in the “outbreak era” of retail. In the following years, the number of personal bank customers increased from nearly 3 million to more than 43 million, an increase of 13 times. Driven by a series of new policies, China Merchants Bank entered the rapid rise channel. As of 2008, the scale of China Merchants Bank’s assets exceeded 1.5 trillion yuan. The annual surge is 6 times, becoming a joint -stock commercial bank that is second only to the four major state -owned banks.
. By 2014, the entire commercial banking industry, including China Merchants Bank, faces internal and external problems. On the one hand, the strong invasion of Internet finance impacted the banking business in the three aspects of deposit and lending. At the same time, the trend of financial disconnects has reduced the overall proportion of traditional banks at both ends of deposit and loan. On the other hand, bank products are serious, coupled with the rise in non -performing assets of banks, and marketization of interest rates. The old profit model is unsustainable. Based on the above two challenges, traditional banks need to change urgently, and need to explore new growth strategies and models in combination with digital transformation cases in other industries.
In the “Global Banking Report”, traditional banks are facing new digital competitors and customers to use digital banking services faster and wider. Digital threats may drag the industry’s net asset yield and reduce it to 5.2%.
The president of China Merchants Bank, Tian Huiyu, proposed that the transformation goal is light bank. One of the focus of transformation to light banks is to clear the digital strategy of “mobile priority”: external traffic, built -in platforms, user realization, and architecture transformation.
If China Merchants Bank took the lead in transforming from customer thinking to user thinking, redefining the boundary of financial services. For a long time, the bank has put the operating center on the card holding customers. After the customer behavior has caused changes in business logic, the bank should jump out of the account of the account and establish user thinking, especially to seize the new generation of young users and transform the closed financial service system to transform Become an open and scenario -oriented service ecology.
. The China Merchants Credit Card has always maintained a keen sense of smell on the market wind direction of young users. In foreign cooperation, with Wanda, Tencent, Baidu, Netease, JD.com, Didi Chuxing, OPPO, Tu, Tu The cooperation pattern of enterprises such as Niu, in real time tracking the dynamics of consumers in real time, followed up the head brands of various industries, and finally formed a win -win pattern of mutual resources.
In 2015, China Merchants Bank Credit Card and Wanda Film signed a comprehensive strategic cooperation, which will comprehensively cooperate in the fields of membership joint marketing, entertainment marketing, and offline business district marketing. Wanda Cinema is the number one cinema line in Asia. It has eight consecutive years of box office revenue, the number of viewers, and the market share of the country. It has mastered a large number of high -quality film resources in China. It can be said to be the “king” of Chinese films. Merchants Bank Credit Card users have high -end high -quality, strong consumption power, and most of them are young customers. The attributes and brand tone of China Merchants Bank Credit Card with Wanda Movies are important factor in cooperation between the two parties. The cooperation with Wanda Film can bring various rights and interests to the existing cardholders of China Merchants Bank, which will play a great role in promoting the brand image construction and user expansion of China Merchants Bank credit cards.
It also, China Merchants Bank also took the lead in turning from “card operation” to APP to turn to APP to start a new era of financial disconnection and eliminating bank cards. China Merchants Bank believes that bank cards are just a static product, and APP is an ecology. It has a rich, intelligent and convenient product experience. The model is lighter and covered. Upgrade, then cooperate with mainstream mobile phone brands (Apple, Huawei, Samsung, Xiaomi, etc.) to achieve omni -channel cooperation from software to hardware, and pursue the improvement of operating traffic.
It different from many banks as trading tools, China Merchants Bank builds APP into a platform for customer operations and services from a strategic height, and has comprehensively enhanced the user experience and creating a financial service ecological platform. Each branch of China Merchants Bank and offline outlets also cooperate with the APP strategy to transform accordingly, to play offline service tender and human cards, and finally create an online and offline omni -channel service system.
The natural interaction: In the past, due to technical restrictions, people were forced to adapt to the machine and must enter the language that the machines or text such as the text can be read. Now, the development of technology enables machines to understand the natural language of customers, including biological characteristics such as fingerprints, sounds, and face. On the one hand, optimize the bank service process. Natural language has the characteristics of “carrying” with you, and its application in the process of nuclear body eliminates a lot of past “necessary” links, including the opening, carrying, and changes of nuclear tools. At the same time, natural language has the characteristics of good anti -counterfeiting performance and uniqueness. Its outstanding performance in security will help the banking industry move towards a wider self -service and online service field.
The content driver: Due to technical and manpower restrictions, most of the previous banking services only stayed at the transaction level. Now it is an era of information explosion and excessive content. Most of the information received by customers is invalid. Banks need to help customers screen valuable high -quality content. This is what the China Merchants Bank APP is doing. At the same time, personalized content is provided according to customer needs. The digitalization of customer behavior enables banks to identify the different needs of each customer, thereby providing the most accurate personalized high -quality information, improving the intuitive experience of customers, and improving information acquisition efficiency.
Im smart services: First, intelligent recommendation. Data identify customer needs and actively recommend products, information and related services according to demand. Second, data products. By sorting and analyzing the massive financial data of customers, provide customers with data products to allow customers to understand themselves better. Third, intelligent services. Advanced technologies such as artificial intelligence are used to provide a part of the complicated services that can only be provided by artificially provided by machines. For example, the Capricorn Intelligence Investment Function in China Merchants Bank APP 5.0 can provide a combination investment recommendation service provided by the “target -income” requirements of the customer. Serve. Fourth, risk management. The digitalization of customer behavior allows the risk scenario to have more recognizable data marks. Through accurate analysis of customer behavior data, banks can intelligently identify customer transaction risks and take risk control countermeasures.
Is real -time interconnection: In the past, due to the restrictions of nuclear body technology, face -to -face cores became necessary. The existence of the special network blocks the obstacle -free circulation of information, and customers must go to the bank outlets to enjoy most bank services. At present, the development of remote nuclear technology and the openness of information transmission methods make real -time interconnection possible. The financial nucleus can occur in various scenarios, and bank services will be everywhere. For customers, banks are no longer a special financial place. Its services can be separated from the restrictions of outlets and special networks, and have the ability to penetrate the customer life scene. Many bank services that can only be obtained offline can now be satisfied online and outside finance.
The long -tailed customers who were ignored by banks because of income could not cover costs, and became the source of intercepting traffic by Internet companies. They seize various online and offline scenes and user entrances, and complete the closed -loop structure of the ecosystem through a small high -frequency payment business. Lost high -frequency payment business that maintains customer viscosity, banks are getting farther and farther from customers, especially young customers, and even have the danger of becoming product suppliers. What is even more worrying is that if you lose the favor of a new generation of young customers, the foundation of the “value customer” at the top of the bank pyramid will no longer be firm.
Igly, China Merchants Bank planned to plan in 2010, and launched a diversified scenario layout of Life APP 1.0 to cope with the potential crisis of young customers lost. Different from the China Merchants Bank APP, the Life APP focuses on opening up life, consumption, and finance. Taking “finance as the core, life as an extension”, creating a “quality life”, layout of life scenes, such as two votes, malls, tourism and other scenes. “Super Application” leap.
The China Merchants Bank has continuously expanded the boundaries of China Merchants Bank services through external extension scenes, and realized a closer connection of financial and living scenarios. After several years of hard work, China Merchants Bank has made good progress in rice tickets and movie tickets. As of the end of June 2018, 8.19 million customers used the service of Merchants Bank’s meal tickets and movie tickets, an increase of 30.66%over the same period last year. In the first half of this year, China Merchants Bank continued to focus on the scenes that are closely related to life, especially the scenario of transportation, and the overall momentum has developed well.
At the same time, the integration of intelligent technology allows the entire financial ecosystem of the China Merchants Bank to enter the time of the stream of monetization acceleration and improvement capacity.
The president of China Recruitment Bank, Tian Huiyu, mentioned, “As a bank with retail finance, the cost income ratio is already the third lowest in the country. After the extent, under the circumstances of other factors, or if other resources are used, the injection of technology will change the cost income curve and growth curve. ” The application of big data technology has greatly improved the efficiency and customer experience of China Merchants Bank, and the transformation rate of users has increased by 2.5 times. In the three -month pilot of 2018, China Merchants Bank found that the marketing success rate of complex wealth management products reached 13.47%, which was 4.7 times that of financial management managers’ marketing. In addition, several pairing groups (dual -gold customer bases, ordinary customer bases, and basic customer bases) are much higher than the marketing efficiency and output of no concentrated business customers. The 2018 annual report of China Merchants Bank shows that the operating income of 2018 was 248.555 billion yuan, an increase of 12.52%year -on -year; the net profit attributable to shareholders was 80.56 billion yuan, an increase of 14.84%year -on -year -this is the first time that China Merchants Bank has achieved operating income and net profit synchronization since 2014. “Double -digit growth”.
. As of the end of June 2018, there were 300 employees of the China Merchants Bank online direct operation team. It has achieved remote centralized operations on 3.86 million customers, while backstage supports 3,000 IT teams that support Merchants Bank APP.
The president Tian Huiyu also stated in internal speech: “People from China Merchants Bank’s future technology background will reach 30%-40%, or even 50%. Our benchmarking company is fintech company. “
In many places worthy of reference, the core and decisive impact on other factors are the team building and operation model around China Merchants Bank’s digital team. In summary of China Merchants Bank’s newly established online banking division, Digital GM has undertaken the leadership functions of China Merchants Bank’s digital innovation and transformation: participating in the planning company’s digital strategy and innovation projects, organizational and controlling various digital teams, from creativity to publishing digital products, launching, and launching and launching. Promote cross -department collaboration and decision -making (Internet financial leadership group) for innovative projects.
In the security supervision requirements of the banking system, the complexity of the banking system is high. The difficulty of developing the mobile banking app is not only in the APP itself, but also the opening of the background system. There are many difficulties in the cooperation of the corresponding departments, which is why the bank app user experience is very different -the difficulty from “having” to “excellent” is less difficult than from “none” to “yes”. Therefore In the construction, it is important to introduce the Internet banking division.
The key to China Merchants Bank’s innovation strategy — the foundation, heavy technology and new architecture
. The focus of retail business is transferred from bank card to APP, starting from user thinking; r; r;
2. Seeking cross -border cooperation and excavating long -tail users with external scenarios, headed by the order of operating traffic
1. Big data, intelligent driver, and intelligent use to improve the use Operating efficiency, reducing operating costs, and improving customer acquisition capabilities;
2. Use scientific and technological transformation and innovation of its own business model and service
. The company’s strategic emphasis on digital transformation concepts ;
2. Create an empowerment team and strengthen the consciousness of cross -department collaboration