Financial Markets, Institutions and Risks (Mar 2024)
Сan citizen Internet banking in China become a champion in the digital transformation era?
Abstract
This study aims to make theoretical and practical contributions by addressing stagnation in the context of digital transformation (DX) and proposing specific measures. Focusing on the banking industry’s skilled response to rapid changes to maintain and improve competitiveness, this study employs quantitative methods to investigate the expectations and assessments of Chinese financial service users regarding Internet banking. With a clear objective, this study seeks to contribute theoretically and practically by addressing stagnation in DX. Specifically, it focuses on the banking industry’s response to rapid changes, employing quantitative methods to assess and understand Chinese financial service users’ expectations of Internet banking. The results reveal that the prevalent use of payment services through mobile applications has significantly expanded the scope of financial services among citizens. Key factors driving innovation in the financial industry through fintech include close communication with consumers, service enhancement and sophistication and ensuring reliability. Privacy and the ethical use of personal information have been found to function as an indirect pathway that plays a vital role in socio-economic activities, acting as a critical element for the future development of the financial industry. These findings provide actionable insights for fostering innovation and development in the financial sector. The uniqueness of this study lies in its primary quantitative data analysis, which compares the prospects of financial services in China’s advanced DX market. It shows the path the banking industry should take, emphasising the simplicity of mobile applications and the high frequency with which vital components are used. Going beyond theoretical insights, this research is a practical guide for implementing specific actions in a real business environment. It provides valuable insights into the Chinese market and offers guidelines for the broader financial industry currently navigating the intense waves of DX, ultimately aiming for sustainable and effective DX.
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