Ride the wind and waves! The Road to Digital Transformation in the Era of Fintech

Introduction | The rapid development of financial technology has accelerated the wave of digital transformation. In this issue, we invited Mr. Han Guangzu, the ambassador of Tencent Cloud TVP industry, to give us a keynote speech on "Digital Transformation under the Wave of Fintech". He started from the stage of financial digital transformation. From the perspectives of , organization and strategic planning, he deeply analyzed the overall picture of scene manufacturing and the development of agile evolutionary ecological banks, and shared with everyone the vision of the future of Metaverse Bank.

About the Author

Guangzu Han, MBA from University of Southern California, Tencent TVP industry ambassador, has more than 26 years of experience in enterprise IT/MIS/IS digital transformation, innovation, and operation, including software and hardware engineering, including professional service solutions, planning, implementation, Established deep learning for large-scale data analysis, data collection and image object detection, as well as experience in telecom public cloud construction and development, familiar with business system analysis and overall strategic planning; and support business application development in e-commerce and financial/banking sectors; also Over 20 years of engineering team management. Served as CIO/COO/VP/Director of two of the world's top 500 groups, with sufficient experience in Internet veteran e-commerce ( http://Newegg.com ), software company, bank Party A and B innovation, digital transformation, investment, pre-sales and M&A, DD experience.

1. Stages, organization and strategic planning of financial digital transformation

(1) The stage of financial digital transformation

Financial digital transformation has gone through four stages: as shown in the figure below, financial digital transformation has gradually entered the deep-water area of financial digitalization from straight-through finance in the 1.0 era, to flow finance in the 2.0 era, and then to scenario finance in the 3.0 era. , and the customer finance in the future 4.0 era will realize the combination of full customer experience and virtual banking. At present, most banks in financial digital transformation are staying in the 2.0+3.0 stage and gradually entering the 4.0 stage. Digital 2.0 is finance that depends on traffic, digital 3.0 is scenario finance, and digital 4.0 is customer finance. Therefore, customer experience and scenarios play a crucial role in the digital transformation of finance.

(2) Strategic planning and structure of financial digital transformation

Financial digitalization strategic planning should cover overall strategy overview, strategic framework, strategic positioning, strategic goals, strategic initiatives, overall architecture overview, business architecture, business architecture, application architecture, information architecture, digital infrastructure architecture, enterprise open platform architecture-ecology, Scenarios, channels, government, finance; an overview of the overall structure, the digital transformation of banks is an all-round transformation of the BTE (business, technology, environment) trinity, involving user experience, business scenarios, data integration, digital platforms, organization management, system regulation, construction Key elements such as operation, information security, cultural literacy, and agile drive are summarized as a "three-level ten-step" design method according to top-level design requirements. And the complete process is as follows:

At the strategic planning level of financial digital transformation, it mainly focuses on scenario finance, user experience, digital operation, and agile driving, and then combines key technologies with operational goals to connect the asset side and the capital side through a smart and open platform. Its main purpose is to empower the banking business, improve the level of technology, produce innovative products, and at the same time enhance the company's reputation.

Taking Industrial Bank as an example, Industrial Bank regards digital transformation as its own battle of life and death, and implements it in all aspects of strategic transformation. Specifically, they integrate financial services into corporate production and people's lives. Emphasize industrial integration, public-private integration, and urban-rural integration. In the field of science and technology, a leading department for digital transformation has been established, the top-level design of the bank's digital transformation has been strengthened, and the overall planning and construction management capabilities of technological development have been improved. In the retail field, the organizational structure of the retail line has been adjusted to a total of five departments. Among them, the establishment of a retail platform will enhance the ability to operate customers remotely and centrally; the retail credit department will be established to deepen the intensification and digitization of retail credit business.

Second, the overall interpretation of scene production

After introducing the relevant strategic planning, we turn to the exploration of scene manufacturing. Scene fabrication is a complete set of methodology, which includes four aspects: Scene Grafting (SG), Scene Participation (SP), Scene Replication (SR), and Scene Overlay (SO).

(1) Scene Grafting (SG)

Scenario Grafting (SG) has an IBCD funnel model that connects scenarios, values, and time and space. Scene grafting is a series of actions such as cross-border thinking, freshness, differentiation, participation, integration with industry brands, making products into connectors, gaining more traffic entrances, and increasing customer stickiness.
IBCD funnel model:
I : Industry/Differentiation (Strong and Weak)
B: Brand tone (style behavior value proposition/engagement)
C: Customer coordinates (market area level 1-5/number of customers is small to large)
D: Demand Category/Demand Intensity

A typical example of virtual product grafting in scenes is QQ's Olympic events. For example, in the city Solitaire where the torches of the 2008 Rio de Janeiro Olympics were passed, we can see that QQ is grafted with Mona Lisa's smile, and the torch can display maps, people And the city, this solitaire activity has brought about 60 million new people to QQ.

(2) Scenario Participation (SP)

The purpose of scene participation (SP) is to compete for users, attract users to contribute, and make users and brands act in the same way.

In order to attract more users to participate in the scene, we need to have different ideas in the face of possibly different users. After evaluating different customer groups, we need to package them all, and finally produce a result. The composition of this result is a new product, new of copywriting and new ways to play. A typical case is Li Dujiu, Oreo and Luhan launching satellites. Luhan launching satellites is ostensibly to give back to fans' welfare. At that time, the number of participants exceeded 1.77 million. In fact, it is a platform to help more young people participate in satellite science education scenes Charitable activities.

(3) Scene Replication (SR)

The purpose of scene replication (SR) is to copy the original scenes of life, specialization and ritualization into specific products, channels or spaces, and build the surface (point to line) of the shopping environment with the help of physical scenes; with the help of virtual scenes (APP), to build a "consumer service face"; to build a "connection and promotion face" with the help of scene experience marketing activities; environmental service passenger flow sales constitute a "body".

Beijing Joy City is actually a comprehensive case of scene duplication - the construction of a shopping environment with the help of physical scenes is a facet. With the help of the virtual scene (APP), the consumer's usage behavior can be understood through the APP, and a consumer service surface can also be constructed. Finally, use the experience of the scene and the marketing activities to build the connection and promotion. Combining different aspects, let consumers immerse in it.

(4) Scene Overlay (SO)

The purpose of scene overlay (SO) is to track and set scenes around the user's life, consumption and social interaction. Set the scene from online to offline, and flow from scene to scene, giving users a full scene experience.

A typical case of scene overlay is Kidswant. As a leading brand in the retail industry for pregnant and children, it mainly builds a customer relationship chain and combines service scenes + social scenes to attract users. Its APP is an emotion-based connector that combines online and offline and social scenarios, including medical treatment + learning, to fully meet customers' needs in spirit, service and products.

3. Development of agile evolutionary ecological banks

As we all know, the concept of agile banks has been mentioned more in the past few years, but now the requirements for banks are not only agile, but an agile and evolving ecological bank. From the perspective of banks, it can be divided into three modules: channels, product services and communities, and private domains. The models of ecological banks also include open platform type, intermediary drainage type and so on.

To build such an agile and evolving ecological bank, the requirements for the digital team in the financial industry are very high. It is necessary to comprehensively improve the architectural capabilities of the front, middle and back offices of the enterprise, and to achieve sufficient intelligence in the process. It is necessary to continuously build agile and open The self-evolving LEGO-type bank gathers ecology, achieves symbiosis and win-win, technology empowerment, ubiquitous service, and intelligent engine.

4. Imagination of Metaverse Bank: Starting from Customer Experience

Regarding the brainstorming of Metaverse Bank, the core of Metaverse Bank in the next few years lies in scenario finance, comprehensive user experience, digital operation combined with journey and ecology, agile drive with technology ABCDIS, and connecting assets and funds through an open platform , combined with the interaction between the display and the virtual world, and can meet the basic requirements of users and customers 5S (simple, fast, safe, closed-loop, problem-solving). With reference to the eight elements of the metaverse given by Roblox: identity, social interaction, immersion, low latency, diversification, anytime, anywhere, economic system and civilization, the service characteristics of the metaverse bank can be summarized. The key to the application of Metaverse Bank lies in how to realize the multi-modal integration and interaction method and ensure the full-scene interactive experience, so as to help the generation and output of Metaverse value. When customers wear interactive devices, how mobile banking can achieve functional gameplay, how digital people can achieve wonderful interaction, whether points mall can achieve the effect of shopping, etc., are all forms that can be imagined in the future.

In the process of digital transformation, it is important to maintain the value of the platform whether it is innovation or new blue ocean:

Incubator Internet Model: Cloud platform based on IaaS, PaaS, SaaS, with scenario finance, comprehensive user experience, combination of journey and ecology, digital operation, agile drive as the core, application programming interface (API), software development kit (SDK) and other tools Open up the asset side and the capital side, realize opening and output to attract fintech entrepreneurs to enter, the bank provides the scene, and realizes guidance and control through capital means in the early stage of its project development, supplementing the shortcomings of the bank's traditional business in the Internet, when it is incubated The projects meet the bank’s own needs, and can absorb new business into the bank itself through capital increase and holding, such as trust and SPV, and do value management through capital planning as a continuous operation or a company platform M&A merger, acquisition or sale as a direct means of profit.

In the rolling wave of digital transformation in the industry, financial technology is like a bear running after you. Bicycles are the basic skill of an enterprise, and those who ride bicycles are colleagues in the industry. If you stop the pace of innovation and iteration, Then it's not far from failure.