Bank Of Beijing Co.Ltd(601169) president Yang Shujian said at the 2022 Tsinghua Wudaokou Global Financial Forum on April 17 that at present, the digital transformation of the banking industry is being further promoted. In the face of opportunities and challenges, small and medium-sized banks need to further strengthen exploration from the five aspects of strategy, data, ecology, talents and risk control to find a suitable digital transformation path.
First, take strategy as the guide and improve the top-level design of digital transformation. The strategic pattern determines the end of digital transformation.
He said that for small and medium-sized banks, on the one hand, we should fully realize that the digital transformation is by no means a simple online business, but a revolution in cognition and thinking and a comprehensive reconstruction of the front, middle and back of business. Banks must formulate a comprehensive digital transformation strategy.
On the other hand, small and medium-sized banks also need to recognize the realistic conditions of their “tight balance of resources”, highlight the focus of transformation on the basis of fully studying the regional characteristics, customer group characteristics and their own endowments, and invest their limited resources in the most critical, most urgent and multiplier effect links, so as to drive the overall improvement with key breakthroughs.
Second, driven by data, release the value potential of data elements. Data is the most important factor of production in the era of digital economy and the medium and bridge for the interconnection of all things.
He specifically stated that first of all, we should strengthen the construction of data governance system from the source and solve the problem of data quality by supervising the quality of data submission, the construction of enterprise level data dictionary and data resource directory.
Secondly, strengthen the integration and application of external government public data, tripartite platform data and all kinds of data in the bank, improve the level of digital marketing, digital risk control, digital operation and digital management, and solve the problem of data value realization.
Finally, we should establish and improve the long-term mechanism and protective measures of data life cycle security management, establish a historical data security cleaning mechanism, and solve the problem of data security.
Third, build a new digital business model of openness, cooperation and win-win by focusing on ecology.
He believes that we should give more prominence to the business philosophy of “customer-centric”, adhere to the perspective of “business ecology”, and build a digital comprehensive service capability of internally aggregating products and services and externally connecting cooperative institutions and users.
“Explore the data interconnection and sharing with peers, customers, technology suppliers, financial technology companies and other ecological parties, as well as the plug and play of products, so as to realize the seamless embedding of financial services, meet the all-channel, all-weather and intelligent service needs of customers in different scenarios, and build an ecological platform based on the industrial chain / personal life scenarios.” He said.
He believes that we should promote technology research and development from the perspective of “technology ecology”, build a closer industry university research joint innovation mechanism on the basis of non outsourcing of core competencies, explore the establishment of cross regional digital transformation technology alliance of small and medium-sized banks, and make full use of external forces to improve the efficiency of digital transformation.
Fourth, take talents as the guarantee to inject lasting power into digital transformation. Digital transformation has the dual characteristics of technology intensive and talent intensive. Talent team is the fundamental guarantee of digital transformation.
He specifically said that small and medium-sized banks need to adhere to self-cultivation, supplemented by external introduction, and select and cultivate a compound talent team that “understands both science and technology, business, data code and business logic”.
Fifth, take risk control as the bottom line to promote the steady and long-term development of digital transformation. Digital transformation has changed the form of banks, but will not change the essence of finance. Risk prevention and control is still the eternal theme of financial work.
He said that while strengthening the construction of digital risk control capacity, small and medium-sized banks also need to strengthen the prevention and control of new risks generated in the process of digital transformation, such as model algorithm risk, system interruption risk, data leakage risk, scientific and technological ethics risk, be vigilant against credit, market, operation, reputation and other risk changes brought about by the application of digital technology and the development of digital economy, and grasp the balance between technological innovation and risk management.
