The Development Process of Traditional Commercial Banks and Its Transformation in the New Era

With the development of digital technology, the rise of several online financial platforms has had a huge impact on traditional commercial banking. Compared with traditional commercial banks (TCB), digital finance has high efficiency, low risk, low threshold, and diversified services, which has caused huge competitive pressure on commercial banks. For the high-speed and high-quality development of the national economy, the transformation of TCB has been urgent. However, there is a lack of summary on the specific transformation methods and feasibility of TCB in the existing studies. This paper reviews the development process of TCB and digital finance, compares the advantages and disadvantages of digital finance compared with TCB, and tries to analyze the reasons and methods for the transformation of commercial banks. Finally, the conclusion is drawn: Although the emergence of digital finance has squeezed the ecological niche of some TCBs, the transformation process of TCBs is full of risks and challenges. However, commercial banks can achieve transformation by increasing initial capital investment, optimizing talent selection and management mode, and expanding business diversity to absorb and integrate the advantages of digital finance to promote their own and national economic prosperity and development.