The 2021 annual report of A-share listed banks has been disclosed for more than half of the competition. On April 5, according to the statistics of the reporter of Beijing business daily, 23 banks have disclosed the 2021 annual report. During the reporting period, all banks have increased their investment in the field of science and technology, boosting the transformation and upgrading of various businesses. Among them, 14 disclosed the investment in financial technology, information technology and other aspects, with a total investment of 152737 billion yuan. In the view of analysts, in the future, the bank’s investment in science and technology will continue to maintain a good growth trend, and its proportion in revenue or profit will still increase, while the competition will focus on the detailed service ability of business scenario and technology integration.
science and technology investment exceeds 100 billion
More than half of the A-share listed banks have disclosed the performance data of 2021. On April 5, the reporter of Beijing Business Daily found that at present, 23 companies including Industrial And Commercial Bank Of China Limited(601398) , China Construction Bank Corporation(601939) , China Merchants Bank Co.Ltd(600036) , China Citic Bank Corporation Limited(601998) , Bank Of Chongqing Co.Ltd(601963) , Bank Of Qingdao Co.Ltd(002948) , Zhangjiagang rural commercial bank and Ruifeng rural commercial bank have published their annual reports for 2021.
Among the above 23 A-share listed banks, 14 banks disclosed their investment in science and technology, with a total investment of 152737 billion yuan. Among them, Industrial And Commercial Bank Of China Limited(601398) financial technology investment totaled 25.987 billion yuan, a year-on-year increase of 9.1% China Construction Bank Corporation(601939) , Agricultural Bank Of China Limited(601288) followed closely, with science and technology investment exceeding 20 billion yuan: China Construction Bank Corporation(601939) financial science and technology investment was 23.576 billion yuan, an increase of 2.86% over the previous year Agricultural Bank Of China Limited(601288) IT investment increased by 12.2% to 20.532 billion yuan.
In the view of Chen Mingxuan, senior analyst of Analysys analysis financial industry, compared with the previous two years, the investment in science and technology of listed banks is increasing year by year. All banks will successively include the “digital intelligence” operation in their business strategic planning to promote the integration of science and technology and business. Therefore, the bank’s science and technology strategy will go deep, from passive to active is inevitable. As for the reason, the main reason is that under the background trend of digital economy, we use science and technology to improve the efficiency of bank operation and management and break the pain point of traditional banking services, so as to achieve the purpose of cost reduction, efficiency increase and value creation.
From the perspective of investment growth rate, Industrial Bank Co.Ltd(601166) 2021 science and technology investment increased by 30.89% to 6.364 billion yuan Bank Of Chongqing Co.Ltd(601963) , Bank Of Communications Co.Ltd(601328) , China Minsheng Banking Corp.Ltd(600016) also grew by more than 20%: Bank Of Chongqing Co.Ltd(601963) science and technology investment, Bank Of Communications Co.Ltd(601328) financial science and technology investment, China Minsheng Banking Corp.Ltd(600016) information technology investment grew by 27.76%, 23.6% and 21.75% respectively, with a total amount of 336 million yuan, 8.75 billion yuan and 4.507 billion yuan respectively.
In terms of the proportion of science and technology investment, the proportion of science and technology investment in the revenue of all banks is generally about 3%, while the proportion of science and technology investment in the revenue of China Merchants Bank Co.Ltd(600036) , Bank Of Communications Co.Ltd(601328) and Bank Of Communications Co.Ltd(601328) financial technology investment in the revenue has exceeded 4% in 2021, respectively 4.37% and 4.03%. Compared with the same period in 2020, the proportion of China Merchants Bank Co.Ltd(600036) information technology investment in the revenue has decreased slightly by 0.08 percentage points, and the proportion of Bank Of Communications Co.Ltd(601328) financial technology investment in the revenue has increased by 1.18 percentage points.
Yu Baicheng, President of zero one research institute, believes that at present, for large state-owned banks and joint-stock banks, the proportion of science and technology investment in revenue in 2021 is generally around 3%, the proportion of science and technology investment has entered a relatively stable state, and the stage of science and technology R & D from increasing investment to increasing application. Due to the limitations of their own technology, capital and talents, regional banks not only maintain a certain investment in science and technology, but also cooperate with large banks and technology companies to improve the digital level of business.
rush to recruit scientific and technological talents
Talents are an important part of financial technology investment. In 2021, the bank increased the recruitment of financial technology talents. For example, in Postal Savings Bank Of China Co.Ltd(601658) 2021, the IT team of the head office increased to 3400, more than 5300 in the whole bank, and more than 10000 outsourcing personnel. By the end of 2021, China Merchants Bank Co.Ltd(600036) R & D personnel had reached 10043, with a year-on-year increase of 13.07%. Urban and rural commercial banks have also increased the recruitment of financial science and technology talents. In 2021, Bank Of Chongqing Co.Ltd(601963) financial science and technology line has recruited 22 new people in the whole year; By the end of 2021, the total number of financial science and technology talents in Chongqing rural commercial bank had exceeded 440, and the proportion of financial science and technology talents had increased to 3%.
The “rush to recruit scientific and technological talents” of banks continues in 2022. For example, in the spring recruitment of banks in 2022, Industrial And Commercial Bank Of China Limited(601398) will recruit more than 1300 scientific and technological talents and launch the “scientific and technological elite plan”, which is intended to reserve scientific and technological talents for product R & D, big data analysis, information security and other fields Bank Of Communications Co.Ltd(601328) the Financial Technology Department of the head office plans to recruit 900 people. At the same time, financial technology companies and fund companies are also increasing the recruitment of financial technology talents, and many financial management companies have also joined the “competition” for talents.
“Science and technology has become the most core part of all business ends of enabling banks. Almost all banks emphasize strengthening the construction of scientific and technological capacity, and the investment of banks in this field is also increasing, and the core force behind it is financial science and technology talents who understand both finance and science and technology.” The main disadvantage of Mingxuan bank lies in its high recruitment potential and high salary, but the main disadvantage of Mingxuan bank lies in its high talent turnover rate.
Pan Helin, CO director and researcher of digital economy and financial innovation research center of International United Business School of Zhejiang University, further analyzed and pointed out that the purpose of the bank to increase the recruitment scale of scientific and technological talents is to transform to financial innovation, integrate financial products through technology, application and scene, and extend the tentacles of banking business, especially online finance. A large number of talents are recruited, indicating the current online finance The ability of embedded finance still needs to be strengthened, so fresh blood is needed to boost financial innovation.
further boost digital transformation
In January 2022, the people’s Bank of China issued the financial science and technology development plan (20222025), which requires high-quality promotion of financial digital transformation, improvement of the modern financial system adapted to the development of digital economy, and contribution of financial capacity to the construction of a new development pattern and the realization of common prosperity.
“At present, the financial industry is ushering in a technological turning point, a new round of financial reform is being promoted, the financial industry will gradually realize functionalization and digitization, and integrate with the emerging Internet scene, and the financial format will undergo qualitative changes.” Pan Helin believes that one of the reasons why banks increase their investment in science and technology is to keep up with the changing trend of financial science and technology, match the development of the Internet and adapt to the current technological environment.
Second, in order to obtain performance increment, the financial industry is a mature industry. Only by integrating with technology can we break through the ceiling of the industry. Third, in order to provide better financial services, consumers’ expectations of the financial industry are still improving. Through scientific and technological transformation, the financial industry will optimize supply.
For the follow-up, how can fintech boost the transformation of banking business Bank Of Communications Co.Ltd(601328) vice president Qian Bin said at the 2021 performance conference that the construction of digital new bank of communications has just started, the scene ecology needs to be further expanded, and the pace of digital transformation needs to be further accelerated. In 2022 Bank Of Communications Co.Ltd(601328) will implement strategies such as the financial technology development plan (20222025), and better integrate its digital transformation into the construction of Digital China, digital society, digital government and digital enterprise. In addition, the ability of digital management will be greatly improved.
“In 2021, China Merchants Bank’s investment in information technology accounted for 4.37% of its net operating income, and China Merchants Bank will continue to maintain the investment intensity of financial technology in the future.” Jiang Chaoyang, chief information officer of China Merchants Bank Co.Ltd(600036) revealed that China Merchants Bank Co.Ltd(600036) financial technology investment mainly focuses on three key points: the first is customer experience, the second is employee experience, and the third is infrastructure transformation to support more efficient improvement of customer and employee experience. At present, China Merchants Bank Co.Ltd(600036) has basically realized the digitization of customer interaction interface in terms of customer experience, and the digitization of internal office process and operation process in terms of employee experience. It is expected to basically complete all cloud applications in 2022.
Referring to the trend of bank’s investment in science and technology in the future, Chen Mingxuan believes that the bank’s investment in science and technology will continue to maintain a good growth trend in the future, and its proportion in revenue or profit will still be increased. The competition will always focus on the detailed service ability of business scenario and technology integration. It is suggested that banks should strengthen their internal compliance management ability, deepen the intelligent risk control mode, and actively explore the integration of products, services and technology from the whole business chain, Optimize user perception and service experience and enhance their competitiveness.
