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The transition from traditional banking to mobile internet finance: an organizational innovation perspective - a comparative study of Citibank and ICBC

Author

Listed:
  • Zhuming Chen

    (Sun Yat-sen Business School)

  • Yushan Li

    (Sun Yat-sen Business School)

  • Yawen Wu

    (Sun Yat-sen Business School)

  • Junjun Luo

    (Sun Yat-sen Business School)

Abstract

The development of Financial Technology (FinTech) in areas such as mobile Internet, cloud computing, big data, search engines, and blockchain technology have significantly changed the financial industry. FinTech is expected to overturn the traditional banking business model, forcing banks to upgrade and transform. This study adopts a comparative case study method to contrast and analyze the Industrial and Commercial Bank of China (ICBC) and Citibank. It analyzes the strategies, organizations, HR systems, and product innovations adopted by these two banks in response to the impact of FinTech. This paper proposes an “electric vehicle” mode for ICBC and an “airplane mode” for Citibank. Further, it describes the difficulties encountered by the Chinese banking industry and proposes some feasible ways to upgrade. “Technology power” will become the core competitive concept for the financial institutions of the future.

Suggested Citation

  • Zhuming Chen & Yushan Li & Yawen Wu & Junjun Luo, 2017. "The transition from traditional banking to mobile internet finance: an organizational innovation perspective - a comparative study of Citibank and ICBC," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 3(1), pages 1-16, December.
    • Handle: RePEc:spr:fininn:v:3:y:2017:i:1:d:10.1186_s40854-017-0062-0
    DOI: 10.1186/s40854-017-0062-0
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    References listed on IDEAS

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    1. Herzenstein, Michal & Dholakia, Utpal M. & Andrews, Rick L., 2011. "Strategic Herding Behavior in Peer-to-Peer Loan Auctions," Journal of Interactive Marketing, Elsevier, vol. 25(1), pages 27-36.
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