(Yicai Global) March 31 -- Digitization is the most important strategic priority for the majority of China's bankers for the second year running, according to a recent survey.

Some 60 percent of bankers in China regard ‘promoting digitization’ as a key strategic direction, 3.6 percentage points higher than in 2021, according to a joint report by the China Banking Association and UK professional services company PricewaterhouseCooper.

This was followed by “improving risk management and control,” with 42 percent of those polled citing this a strategic priority, reflecting their concerns about the country’s economic recovery and global inflation amid a complex and severe international environment.

“In 2023, we hope that the banking sector will accelerate its digital transformation, promote technological innovation, strengthen the prevention and resolution of financial risks and enhance their ability to serve the real economy so as to fully support the overall improvement of economic operations,” said Zhu Yu, leader of PwC North China Financial Industry.

As commercial banks come under increasing operating pressure they are on the lookout for new sources of profit. Some 55 percent of the bankers surveyed believe that “financial technology playing a leading role in digital transformation” is an important area for profit growth in the banking industry.

Big Data has been the biggest technological hurdle for bankers for three consecutive years, with 44 percent citing it as a concern, according to the report. Mobile communications, including fifth-generation networks and near-field communication, was in second place at 39 percent, while cloud computing was in third place with 35 percent.

Bankers expect a moderate macroeconomic recovery and are optimistic about the future of the banking sector, the survey showed.

Almost a quarter of bankers believe that China’s gross domestic product will maintain an average growth rate of between 4.5 percent and 5 percent over the next three years, while 22 percent think it will be between 5 percent and 5.5 percent.

Editors: Shi Yi, Kim Taylor