China's banking industry and state-owned banks are not only impacted by private capital, but also by emerging technologies such as internet finance and third-party payment. But the impact on foreign banks is simpler, that is, the profits of traditional banks are squeezed by emerging industries and technological progress has fundamentally changed the business form of banks.
For example, many emerging technology and service companies can provide services such as payment, lending and investment provided by traditional banks in a smarter, cheaper and faster way, and Alipay is one of them. These emerging technology companies are restructuring the banking industry, and their rise means competition with traditional banks in terms of cost and results, which not only changes the bank structure, but also changes the usage habits of consumers. The profits of traditional banks have been squeezed, forcing banks to lay off employees and cut costs. At the same time, banks need to increase investment in science and technology to compete with these start-ups. This strategic shift has also promoted the slimming of traditional banks.
On the other hand, technological progress is changing the business form of financial services. For example, it is no longer necessary to go to the counter to open an account remotely, which liberates the establishment of tellers. Banks don't need so many employees at all, so it's natural to cut off redundant posts and employees.