Exploring the Path of Digital Transformation Empowered by Financial Technology for Traditional Financial Institutions

Yutong Luo

doi:10.54097/njzffk72

Authors

Yutong Luo Adam Smith Business School, University of Glasgow, Glasgow, UK

DOI:

https://doi.org/10.54097/njzffk72

Keywords:

Financial technology, traditional financial institutions, digital transformation, empowerment path, risk control

Abstract

Deepening digital economic expansion has laid bare chronic operational flaws across traditional finance. Many firms run inefficient daily operations, deliver inconsistent client services, and stick to outdated risk control structures unable to match frequent market changes. Under such circumstances, digital upgrades become a practical choice for these financial players to remove growth barriers and boost overall operating performance. Technologies including artificial intelligence, big data and cloud computing form the core of modern fintech, which supplies essential technical resources to renovate conventional financial services. This paper draws on China’s real financial market conditions, with research materials sourced from official regulatory documents, CNNIC statistical releases, listed commercial banks’ annual filings and firsthand industry cases. The five-aspect analytical framework it establishes covers technical foundation construction, on-site business promotion, internal institutional adjustment, full-range risk governance and inter-industry partnership. Following a step-by-step logic from basic facility setup, practical business launch, institutional matching rules, risk precaution to industrial ecosystem expansion, the article sets clear work focuses for every single part. Empirical results prove synchronous advancement of all five parts guarantees smooth digital renovation, satisfies development requirements for financial organizations of diverse sizes and drives sustained high-quality growth of China’s financial industry.

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