Case Study on Digital Human Technology Empowering Retail Banking to Reduce Costs and Improve Efficiency: The Example of China Merchants Bank’s Digital Human “Xiao Zhao”

Against the triple backdrop of advancements in digital technologies such as big data, artificial intelligence, mobile internet, cloud computing, IoT, and blockchain; the national push for digital transformation; and the scale expansion of retail banking, the role of digital technologies in empowering the digital transformation of retail banking has emerged as a critical research focus. This study employs a case analysis based on China Merchants Bank’s annual reports for the years 2021-2024, examining the effectiveness of digital customer service agents across both financial and non-financial dimensions. Findings reveal that after implementing a digital customer service agent, labor cost ratios decreased while revenue per employee and live agent connect rates increased. This stems from digital customer service agents handling standardized services, freeing human staff to focus on complex and personalized tasks, thereby enhancing service quality and customer loyalty. This study provides reference points for empowering retail banking with digital humans and offers empirical support for advancing digital human technology.