Ivey Publishing
China Merchants Bank: Light Banking, Payments and Blockchain
Product Number:
9B20N024
Publication Date:
07/29/2020
Revised Date:
07/29/2020
Length:
24 pages (9 pages of text)
Product Type:
Case (Field)
Source:
Ivey/CUHK
In 2018, China Merchants Bank, China’s seventh-largest bank and the 30th-largest bank in the world, strategically repositioned itself in “light banking” to address the changing competitive landscape and rapid entry of non-bank financial technology companies. These companies were using information technology to compete in China’s domestic payments market. China Merchants Bank was also actively stimulating innovation. Through its incubation fund, the bank provided funding to its business units for new technology projects. The bank’s president was reviewing one specific project financed by the fund—the cross-border payments blockchain system. He was eager to determine the success of the project and the potential for future development of the blockchain technology, in his efforts to understand the applicability of blockchain to banking in general, and to payments banking in particular.
Learning Objective:
This case was written for banking or management of innovation courses at the senior undergraduate and graduate levels. Students are expected to understand simple banking functions, to have taken basic accounting and finance courses, and to be able to assess the strategies of companies reacting to pressure from paradigm-shifting competitors. After completion of this case, students will be able to,
  • understand the competitive environment of banking in China;
  • assess the need for, and difficulties of, innovation in banking;
  • discuss internal incubation strategies for stimulating innovation;
  • discuss domestic and international payments and the role of the digital revolution in changing payment systems; and
  • understand the nature of blockchain and how it can improve financial services.
Issues:
Disciplines:
Finance,  Entrepreneurship,  International
Industries:
Finance and Insurance
Setting:
China, Large, 2018
Intended Audience:
Undergraduate/MBA
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download
Associated Materials
Supplements: 7B20N024 (216 KB)
You Might Also Like...

Save In: