Small and medium-sized banks are accelerating their digital and intelligent transformation, with institutions like Chengdu Bank, Guiyang Bank, and Shaoxing Bank recently issuing procurement announcements for virtual digital employees, intelligent risk control platforms, and computing servers.

According to analysts, this is both a defensive move against the encroachment of large state-owned banks and a proactive choice for differentiated competition. The key question is how these regional banks can forge a transformation path suited to their unique strengths.

Regional Banks Seek External Help to Boost Tech Capabilities

A new wave of digital intelligence development is sweeping through smaller banks. On August 3, Chengdu Bank, Guiyang Bank, Shaoxing Bank, Guangzhou Rural Commercial Bank, and Jiujiang Bank all issued procurement notices for large model and digital transformation projects, covering virtual digital employees, intelligent risk control platforms, and large model computing servers.

In terms of application, virtual digital employees are becoming standard. On August 3, Chengdu Bank announced a budget of 1 million yuan for a virtual digital employee procurement project, with completion targeted for the end of this year. In July, Guangzhou Rural Commercial Bank launched a two-year project for large model collaborative computing platform development, with a maximum price of 921,600 yuan, focusing on intelligent agents, report generation, knowledge base Q&A, and digital employees.

In April, Sichuan United Rural Commercial Bank invested 1.7 million yuan to procure a digital human customer service product, including customization, training, and management, with a three-year free maintenance period.

Beyond virtual employees, another focus is on computing infrastructure. On July 30, Guiyang Bank issued a tender for large model intelligent platform (Phase II) computing servers, with a budget of 6 million yuan. This aims to procure domestic AI computing resources to support large model applications, addressing current shortages in computing power and model service capacity.

In the risk control sector, Shaoxing Bank announced a 3.95 million yuan project for building an intelligent risk control platform on August 3, while Chengdu Bank and other institutions have also sought suppliers for similar tools.

Wu Zewei, a special researcher at Sushang Bank, noted that this marks a shift from concept exploration to practical application. Digital employee adoption is rising, and many banks are investing in underlying computing and risk control systems. He added that competition in digital transformation is escalating, and regional banks recognize that tech capabilities will influence customer acquisition and risk management, pushing them to invest proactively.

Digital Intelligence Becomes a Survival Imperative

Across the industry, digital transformation is no longer optional but essential for improving efficiency, restructuring processes, and enhancing customer service. Large state-owned banks are leveraging their financial strength to expand into county-level markets. According to the China Academy of Information and Communications Technology, the top four state-owned banks—Industrial and Commercial Bank of China, China Construction Bank, Agricultural Bank of China, and Bank of China—each spent over 25 billion yuan on technology in 2024, with total industry spending reaching 130.09 billion yuan in 2025.

Regional banks have long relied on local knowledge and customer relationships, but this advantage is eroding as large banks deploy intelligent services. Policy support is also driving change. In November 2024, seven government departments, including the People's Bank of China, issued a plan to build a financial system highly adapted to the digital economy by 2027.

In strategy, major banks are prioritizing AI. Industrial and Commercial Bank of China launched a "Digital Intelligence ICBC" initiative with an "AI+ Leadership" action, while China Merchants Bank adopted an "AI First" philosophy. Regional banks are also acting: Qingdao Bank created a new three-year digital transformation plan, and Ruifeng Rural Commercial Bank aims to build an enterprise-wide AI platform by 2025.

Yuan Shuai, co-founder of the New Quality Productivity Think Tank, said this intense tech investment reflects a dual need for defense and long-term positioning. He warned that without quick tech upgrades, regional banks risk falling behind in customer acquisition and risk pricing, making this a necessary response to market changes.

Building a Differentiated Transformation Path Amid the Hype

As smaller banks rush into large models, computing infrastructure, and digital employees, industry homogeneity is intensifying. The critical question is how to avoid this and create a unique, tailored transformation path.

Wu Zewei noted that regional banks face multiple constraints: limited budgets, scarce tech talent, and weak data governance. Balancing continuous tech investment with short-term returns and choosing a suitable construction scale are common challenges.

Yuan Shuai suggested that regional banks should anchor their core strengths. They should focus tech investments on localized service scenarios, tailoring smart services to local customer habits, ensuring technology reinforces their competitive edge. He also emphasized breaking down silos between tech and business departments, ensuring every investment directly improves efficiency and customer experience, creating a positive cycle of tech enabling business and business driving tech iteration.

Wu Zewei added that regional banks should not copy large banks' models. Instead, they should prioritize core areas like small and micro finance and local retail, avoid blind investments, leverage external tech service providers, enhance data governance, and establish clear value assessment mechanisms to track the real impact of tech projects on credit, risk, and costs.