China Construction Bank's digital transformation strategy

With the development of digital technologies such as the 5G era, artificial intelligence and the Internet of Things, a new round of technological revolution is on the horizon. It has become difficult for traditional business models and operations to keep up with the times, so exploring fintech and achieving digital transformation is of great value to the banking industry.

Artificial Intelligence

（Source: YouTube）

China Construction Bank has set up a branch run mainly by robotic staff with artificial intelligence, virtual reality and facial recognition technology. Customers can contact them to meet their business requirements (Future Branches, 2020). DataGrand provides Robotic Process Automation (RPA) products to a number of banks and leading companies to aid in digital transformation (AIT News Desk, 2021). Firstly, RPA enables high-frequency, repetitive and efficient completion of manual tasks, allowing staff to focus more on marketing, service and administrative tasks. Secondly, robots minimise errors on the job. Thirdly, depending on the transaction environment, RPA robots can be used for effective anti-money laundering supervision (ITREX, 2022).

Digital currency    

In September 2022 the China Construction Bank made the first cross-border transaction of a central bank digital currency through a partnership with banks in Thailand, Hong Kong and the United Arab Emirates (CCB, 2022). Digital currency differs from previous currencies in that it exists electronically and digitally.  Banks are opening up online banking so that customers can transfer money, pay bills and buy financial products on the internet themselves, increasing the ease of transactions and reducing the cost of producing and transporting physical currency.

Fintech Platform

CCB has moved 83% of its operations to the cloud. It is estimated to save $150 million annually (Dartnell, 2017). CCB has launched blockchain and big data technologies to give businesses digital services and secure customer transactions.

Conclusion

Overall, digital transformation and fintech improve customer experience by providing convenient and efficient services. Simultaneously, it strengthens the bank's internal governance and reduces errors in its operations.

References:

1. AIT News Desk (2021). Chinese AI And RPA leader DataGrAnd Launches The World’s First RPA Robot Compatible With HarmonyOS System. [online] Available at: https://aithority.com/saas/chinese-ai-and-rpa-leader-datagrand-launches-the-worlds-first-rpa-robot-compatible-with-harmonyos-system/ (Accessed 17th Mar. 2023).

2. CCB (2022) China Construction Bank Successfully Completes Central Bank Digital Currency Bridge (mBridge) Real Transaction Pilot [online] Available at: http://www3.ccb.com/cn/ccbtoday/newsv3/20220928_1664346329.html (Accessed 17th Mar. 2023).

3. Dartnell, J. (2017). How 690-million customer China Construction Bank has digitally transformed | TahawulTech.com. [online] TahawulTech.com. Available at: https://www.tahawultech.com/features/china-construction-bank-digitally-transform/ (Accessed 17th Mar. 2023).

4. Future Branches (2020). How China Construction Bank Is Operating a Branch Staffed Entirely by Robots. [online] Available at: https://futurebranches.wbresearch.com/blog/china-construction-bank-branch-robot-staff-strategy (Accessed 17th Mar. 2023).

5. ITREX (2022) How to implement RPA in finance and banking [online] Available at: https://itrexgroup.com/blog/rpa-in-finance-banking-use-cases-implementation-expert-advice/ (Accessed 17th Mar. 2023).