If traditional banks do not change, they will eventually become “the fish of Picasso,” —  the skeleton may still exist, but it has no value — said Zhu Min, former vice president of the IMF and dean of the National Institute of Finance at Tsinghua University, in a Caixin report.

“The banks are now facing more pressure of business segmentation, and we must actively seek change and explore more scenarios,” Zhu said at the recent Jingdong Financial Global Data Explorer Conference.

Under the impact of financial science and technology, Zhu explained, the previously internalized product chain of traditional banks will be gradually shifting outwards.

He also believes that the current mode of production of financial markets has undergone fundamental changes and subversions.

“The industrial chain of bank services and products is getting longer, finer and thinner. This is a kind of subversion. This subversion is not only on a product but also on an organizational structure level that will fundamentally change the traditional banking model.”

However, Zhu also said that there are still potential risks in the current financial technology, such as the privacy of data, the accountability and management of loans, regulatory issues and so on. Therefore, how to effectively apply the financial technology to bank reforms is “very crucial,” he said.