Fintech, Industrial Convergence, and Farmers’ Prosperity

Abstract

In recent years, fintech penetration into rural areas, alongside the integration of agricultural industries, has posed significant implications for rural prosperity. Hence, this study investigates the impact of financial technology (fintech) on farmers’ prosperity based on the industrial convergence of Chinese prefecture-level cities from 2013 to 2018. Empirical analysis of panel data demonstrates that fintech significantly boosts farmers’ prosperity, particularly in eastern and central China. Furthermore, industrial convergence serves as a mediating factor, enhancing the positive impact of fintech. This suggests that the integration of various agricultural sectors through technological advancements can lead to increased economic benefits for farmers. This study contributes to the literature by providing empirical evidence of the relationship between fintech, industrial convergence, and rural prosperity, an area previously underexplored. Moreover, the research supports the formulation of targeted policies that encourage the diffusion of digital financial services in rural areas, aiming to enhance the livelihoods of farmers and reduce urban–rural disparities. As such, this approach aligns with national strategies for financial inclusivity and rural revitalization.