How Chinese commercial banks innovate: process and practice

Main Article Content

KOK LIAN WOO

Abstract

This paper describes the financial innovation approach and process adopted by large commercial banks operating in China. Data are collected from three case firms using a qualitative case study method. The research shows that regulation can be a catalyst or a hindrance to financial innovation, depending upon the degree of coherence between a bank’s innovation strategy and local government policy. Performance pressure helps drive innovation, whereas organisational bureaucracy and trajectory are major barriers to innovation. Banks adopt different approaches to the innovation process due to differences in institutional arrangement and institutional environment. Practitioners should consider the institutional effects when engaging in financial innovation. This research contributes to current practice by pointing out an integrated approach to financial innovation and regulatory dialectic.

Article Details

Author Biography

KOK LIAN WOO, Paris Dauphine University

Jack has 19 years of working experiences in corporate and professional firms. He is experienced in technology solutions, corporate finance, financial modeling and project management, Jack has been working in China since 2004, before this he was working in a listed company based in Singapore. Jack knows about High-tech, TMT, Energy and Financial Service sectors. His research interest is on innovation, technology nad transformation in FinTech.

Jack is a member of HKICPA, ACCA and MICPA. He holds Executive Doctorate in Business Administration, Master in IT, and Bachelor Degree in Accountancy ( first class).