As the domestic financial industry has deployed a pan-financial ecosystem and carried out scene-based user operations, banks have begun to face many challenges and confusions: How can pan-financial ecological services connect with traditional businesses and reshape the quadratic curve of bank growth? How can the ecosystem business achieve “self-sufficiency” rapid development and find a sustainable business model? How do banks build a value support system to empower new businesses in terms of innovation mechanisms, business operations, agile organizations, and decision-making mechanisms? After struggling to find a way out of the situation, some banking CEOs began to re-examine the ecosystem strategy, doubting whether it could create the expected value for the bank.
At present, through continuous practice, leading financial institutions and Internet giants have explored an ecological strategy to empower banks’ traditional business success path. Banking CEOs should have firm confidence and continue to deploy ecological strategies.
The next three years will be a critical period for the transformation and success of the domestic banking industry. Banks must not only “just fit” and manage the traditional business of the “first curve”, they must also “surprisingly win” and achieve a successful leap through the “second curve” ecological 2.0 strategy.
During this process, the bank still needs to complete two key upgrades:
The first is strategic upgrade. That is to upgrade from the ecological 1.0 strategy to the 2.0 strategy. If Eco 1.0 is an online extension of banks’ traditional business, then when it comes to Eco 2.0, banks need to form a closed operating loop on “user operation-service innovation-value conversion”; in terms of business ideas, strictly practice “user-centric , Service-oriented”.
The second is capacity upgrading. Banks should make full use of the best practices of the Internet industry to create Internet-style, scenario-based user operation capabilities, and enterprise-level sharing capabilities that can support rapid business innovation.
In addition, in terms of operations, banks need to implement the “Six Modernizations” strategy:
GBC integration: build an integrated business model of the government (G), enterprise (B), and individual customer (C) ecosystems, and promote mutual traction between different customer groups (see Figure 1). On the one hand, the bank has a large number of high-quality government and corporate customers, which is an advantage that the Internet companies that mainly operate on C-end customers do not have; on the other hand, after the bank has established business relationships with a large number of customers through financial services, it uses digital means to settle internally. A lot of user data.
Regional grid of the head office and branch: establish a linkage mechanism between the head office and branch in the ecological operation. Banks should attach importance to offline ecosystem opportunities with regional characteristics. Many offline scenes of banks often have regional characteristics, such as local advantageous industries, centralized high-tech parks, etc. Similar industries and geographic concentration are the basis for building an ecosystem; at the same time, local branches usually have their own home markets. Unique regional competitive advantage (see Figure 2).
Agile front, middle and back office organizations: internally establish an organizational mechanism that can promote rapid cross-business and cross-functional collaboration. In order to meet the needs of customers for “financial + non-financial” comprehensive innovative products and services, banks should proactively break down departmental walls, establish an organizational mechanism that promotes rapid cross-business and cross-functional collaboration, and continue to polish them through practice. First, the head office should set up a cross-departmental composite functional team; secondly, the bank should implement an internally innovative work atmosphere and promote agile working methods; finally, the bank should design a targeted management system for personnel, finance, and technology.
Internet-based customer management: Fully learn from the user operation ideas of Internet companies, and “acquire customers and live customers” through service innovation. Leading banks have achieved impressive business growth by recruiting Internet talents, introducing new technologies, and adjusting their organizations, and integrating traditional customer operations with Internet methods (see Figure 3).
Platformization of business capabilities: build enterprise-level shared capabilities to support the rapid development of business (see Figure 4). Banks can promote the platformization of business capabilities from two aspects: First, the bank needs to integrate the scene businesses in the ecology horizontally and vertically. Secondly, banks should promote resource concentration and unified technical solutions to reduce resource waste caused by repeated development and improve collaboration efficiency.
Open technology capabilities: export fintech capabilities to business partners, co-create products and services with technology partners, and accelerate the integration of technological innovation and traditional banking. First, banks need to open their minds, actively optimize the industry, and take “openness, altruism, and win-win” as an important cooperation concept; secondly, open business, on the one hand, export industry solutions, data, and technical capabilities to business partners in the ecosystem; another On the one hand, through financial technology incubators or innovative technology investment, it has widely attracted high-potential and high-fit financial technology partners across all channels, opened application scenarios and industry guidance to them, and accelerated the integration of innovative technology achievements with traditional banking business. In the past, banks Based on the one-way output model, it is upgraded to co-create products and services with partners.
In the process of opening up technological capabilities, banks can seize the position of the operation hub, continue to use technology to drive the search for ecological entry points for value, and gather resource advantages such as talents and capital, thereby establishing barriers to competition in the ecosystem.