Core Insights - The 2023 Central Financial Work Conference emphasizes the importance of "technology finance, green finance, inclusive finance, pension finance, and digital finance," providing clear direction and policy guidance for the digital transformation of commercial banks [1] - The digital transformation of the banking industry is driven by both policy and technology, involving upgrades in technical architecture, restructuring of business processes, optimization of organizational structures, and innovation in service models [1] - The depth and breadth of digital transformation in credit business directly impact the future competitiveness of banks, necessitating a focus on financial technology development in key areas such as technological innovation, green low-carbon initiatives, and services for small and micro enterprises [1][2] Digital Transformation Progress - Commercial banks have made significant progress in digitalizing credit business, focusing on online channels, automated approvals, and intelligent risk control [2] - As of the end of 2024, the total loan balance in China is projected to reach 259.58 trillion yuan, a year-on-year increase of 7.2%, with loans to "specialized, refined, characteristic, and innovative" enterprises at 4.26 trillion yuan, up 13.0%, and inclusive small and micro loans at 32.93 trillion yuan, up 14.6% [2] - Despite advancements, many banks' digital transformations remain at the technical application level, lacking deep integration with business processes, risk management, and organizational culture, leading to suboptimal outcomes and potential new risks [2] Financial Technology and Credit Business - Financial technology, utilizing big data, cloud computing, artificial intelligence, and blockchain, aims to optimize and reshape financial service models, widely applied in various financial sectors including credit financing [3] - The operational efficiency and risk control levels of credit business are crucial for banks' performance and market position, as credit business is a core source of asset allocation and profitability [3] Challenges in Digital Transformation - Data governance and security challenges persist, including the "data island" phenomenon and inconsistencies in historical data, which hinder the effective use of data [8] - The accuracy, stability, and interpretability of models used in risk control are critical, as biases or overfitting can lead to systemic decision-making errors [9] - Organizational culture conflicts and a lack of cross-disciplinary talent hinder the digital transformation process, as traditional banking culture emphasizes stability while digital transformation requires innovation and agility [9] Systematic Path and Implementation Measures - Establishing an enterprise-level data governance system is essential for banks to compete based on data assetization and application capabilities [10] - Building a transparent and trustworthy intelligent risk control system is necessary to balance technological innovation with risk management [11] - Fostering an agile organization that integrates technology and business is crucial, requiring a shift in organizational culture and talent development strategies [13] Conclusion - The digital transformation of credit business driven by financial technology is a systematic project, with 2026 marking the start of a new round of financial technology development planning [14] - Future competition in the banking industry will extend beyond individual products or channels to encompass the construction of credit ecosystems and value chain integration [14]