Research on the Mechanisms and Strategies of Financial Product Innovation in Chinese Commercial Banks under the Background of Digital Finance
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Department of Accounting, Faculty of Business and Economics, Chongqing Metropolitan College of Science and Technology, Chongqing, China
Faculty of Railway Transportation, Chongqing Vocational College of Transportation, Chongqing, China
Abstract
With the rapid development of digital finance, commercial banks face growing pressures from fintech firms, internet platforms, and shifting customer demands. Against this backdrop, this study develops a theoretical framework grounded in dynamic capability and institutional theories. The framework highlights external drivers, internal transmission mechanisms, and capability reconfiguration, and examines how these elements jointly shape the mechanisms and pathways of financial product innovation in commercial banks.
The study finds that technological advancement, industry competition, and evolving customer needs serve as the primary external drivers of financial product innovation in commercial banks, while strategic orientation and organizational restructuring function as the key internal innovation pathways. These pathways enable banks to reconfigure three core capabilities, including data-driven operations, agile innovation, and ecosystem cooperation. These capabilities facilitating a shift from incremental business optimization to comprehensive digital system redesign.
In addition, the study identifies major challenges related to technological iteration, data governance, organizational structure, market competition, and customer service. It proposes a set of integrated innovation strategies, including modernization of technological architecture, enhanced data governance, organizational–talent alignment, business model transformation, and customer service enhancement. The research concludes that banks should approach digital transformation from a strategic perspective, strengthen innovation culture, and build organizational capabilities to achieve sustainable financial product innovation and long-term competitive advantage.
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As a theoretical study, it is based entirely on the review and analysis of existing scholarly literature and publicly available industry reports cited in the references.
This work is licensed under a Creative Commons Attribution 4.0 International License.