The digital transformation of small and medium-sized banks should not be reduced to how these institutions themselves should proceed. Rather, the question is whether we can establish shared infrastructure, said Liu Xiaochun, vice-president of Shanghai Finance Institute.

It may require the government or industry associations to spearhead the creation of platforms that are commercially viable yet genuinely fulfill the service functions of public platforms.

They would provide small and medium-sized banks with digital transformation infrastructure, thereby significantly reducing costs, said Liu on the sidelines of the International Forum for China Financial Inclusion 2025. The two-day forum closed in Beijing on Thursday.

Video by Jiang Xueqing / China Daily