Digital Transformation of Traditional Chinese Banks

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.