Research on the Impact of Digital Finance on Household Financial Asset Allocation

Abstract

With the continuous progress of science and technology and the popularization of the Internet, digital finance has gradually become an important development direction of the financial industry, and the development of digital finance has a profound impact on household financial asset allocation behavior. This paper reviews the research results related to digital finance and household financial asset allocation, discusses the possible direct and indirect impacts of the development of digital finance on household financial asset allocation by combining asset portfolio theory, market friction theory and long tail theory, and proposes the possible intermediary effects of financial availability, financial literacy and entrepreneurial willingness through mechanism analysis. Based on the above discussion, this paper puts forward relevant suggestions: (1) improve the penetration rate of digital finance, and increase the promotion of digital finance for remote areas and low-income groups; (2) Strengthen financial education to enhance families' awareness and digital financial literacy of digital finance. (3) Optimize digital financial products to meet the diverse needs of users. (4) Strengthen government supervision, improve digital finance related laws and regulations, and ensure the healthy and sustainable development of digital finance.