Digital Financial Inclusion Research Articles

Exploring the influence of digital financial inclusion and technological progress on renewable energy consumption: a Bayesian quantile regression analysis

Exploring the influence of digital financial inclusion and technological progress on renewable energy consumption: a Bayesian quantile regression analysis

Digital Inclusive Finance, Rural Loan Availability, and Urban–Rural Income Gap: Evidence from China

Reducing the urban–rural income gap stands as a pivotal factor in attaining sustainable economic development. Policymakers and researchers have focused on whether digital inclusive finance can narrow the urban–rural income gap. Utilizing provincial-level panel data from 31 regions in China, this paper empirically tests the impact of digital inclusive finance on the urban–rural income gap across different areas of China, specifically analyzing the mediation effect of rural loan availability. The findings indicate that (1) the expansion of digital inclusive finance can enhance the inclusiveness of financial services in rural areas and narrow the urban–rural income gap; (2) the effect of digital inclusive finance on the urban–rural income gap exhibits regional heterogeneity; (3) the rural loan availability has a mediation effect on the urban–rural income gap, but its growth will weaken the narrowing effect of digital inclusive finance on urban–rural income gap; and (4) the reduction in the urban–rural income gap attributable to digital inclusive finance exhibits a nonlinear relationship with the level of urbanization. This paper recommends guiding the digital transformation of rural financial institutions and enhancing farmers’ financial literacy to increase the availability of loans in rural areas. Furthermore, implementing region-specific policies and regulations could effectively narrow the urban–rural income gap.

Digital Financial Inclusion and Inclusive Growth ––Empirical evidence based on the China Household Panel Survey

As an innovation in traditional inclusive finance, digital inclusive finance is an important way to coordinate the income gap between urban and rural areas, popularize financial products and services, and promote the digitalization process. Therefore, this study matches the digital inclusive finance index with the Chinese household tracking survey, uses a panel data econometric model, a mediation effect model, and a moderation effect model to control for the characteristics of heads of households and families, and explores the impact mechanism of the development of digital inclusive finance on inclusive growth in urban and rural areas in China, with a view to providing a scientific basis and policy suggestions for promoting inclusive growth. The study finds that: First, digital inclusive finance has a significant income-increasing effect on both urban and rural households, among which it has a greater impact on rural households, which is conducive to narrowing the income gap between urban and rural areas; Second, digital inclusive finance improves rural household income and narrows the income gap between urban and rural areas by promoting rural household entrepreneurship and business activities and alleviating the formal credit constraints of rural households; Third, digital inclusive finance can generally promote families with access to the Internet, a strong ability to use digital tools, and small information constraints to start businesses and obtain formal credit. This study innovatively incorporates entrepreneurial quality into the research of the transmission mechanism; three theories of the "digital divide" are put forward and tested. Research value: Clarifying the transmission mechanism of digital inclusive finance to promote inclusive growth, and providing policy suggestions for the development of digital inclusive finance.

Can digital financial inclusion promote the nighttime economy? - New evidence from Chinese counties’ nighttime lighting data and threshold model

In the post-pandemic era, the relative weakness of the economy is reflected not only in the macro data but also in the nighttime economy. Based on the threshold model and unbalanced panel data of 1772 county-level administrative units in China from 2014 to 2020, this paper deeply explores the relationship between digital inclusive finance and night economy and draws the following conclusions. (1) When digital financial inclusion exceeds certain thresholds, its beneficial influence on promoting the nighttime economy increases from 8.13% to 26.59% and 87.71%. (2) Digital financial inclusion promotes the nighttime economy by increasing employment in the secondary industry and promoting technological innovation. However, digital financial inclusion hinders the nighttime economy by reducing entrepreneurial activity in the accommodation and catering sectors. (3) Coverage breadth first inhibits, then promotes, and inhibits the nighttime economy in different intervals; the effect of usage depth and digital level on the nighttime economy in intervals shows an increasing trend. (4) In the Yangtze River Economic Belt region, digital financial inclusion initially inhibits the nighttime economy but turns into promotion as it develops; after the implementation of the rural revitalization strategy in 2017, digital financial inclusion can more positively and significantly promote the nighttime economy.

The inverted U-effect of digital financial inclusion on household food carbon footprint in China: The moderating roles of environmental concern and future expectations

Digital financial inclusion (DFI) is an enabler for achieving carbon peak and carbon neutrality. We use China Family Panel Studies (CFPS) data spanning 2014 to 2020 to investigate the impact of DFI on household food carbon footprint (HFCF) in China. We find that (1) DFI has an inverted U-shaped effect on HFCF, changing from promotion to suppression; (2) The impact of DFI on HFCF demonstrates multidimensional heterogeneity. The impact of DFI on HFCF demonstrates multidimensional heterogeneity. The inverted U-shaped relationship is more pronounced in non-agricultural households, households with high-educated head, high-income households, households with unhealthy lifestyle heads, low-status households, households without the Internet, and households in the eastern, central, low-industrialization, high-urbanization and low-environmental regulation region; (3) Environmental concern and future expectations significantly moderate the inverted U-shaped relationship between DFI and HFCF, where environmental concern strengthens and future expectations weaken the effect; (4) Considering the dimensions of DFI, usage depth and digitization level of DFI have nonlinear effects on HFCF, while coverage breadth consistently exerts a positive influence. Policy implications are derived from the research results.

Examining the Impact of Digital Inclusive Finance on Urban and Rural Consumption Patterns: Insights from China Household Finance Survey in 11 Coastal Regions

Examining the Impact of Digital Inclusive Finance on Urban and Rural Consumption Patterns: Insights from China Household Finance Survey in 11 Coastal Regions

Moderating Role of Technology Self-Efficacy on Fintech Usage and Digital Financial Inclusion of Women in Rural Uganda

Digital financial inclusion (DFI) especially among rural women remains a significant challenge in Uganda. Despite the potential benefits of fintech’s, limited technology self-efficacy (TSE) among rural women hampers their effective usage. This study examined how TSE influences the relationship between fintech usage and DFI among these women. Data were gathered via a structured questionnaire from 384 women vendors in Mbale main market, employing an explanatory, quantitative, cross-sectional design. Using hierarchical regression and Hayes PROCESS Macro V 4.0, the study assessed both direct relationships and the moderating effect of TSE. Results indicate that both fintech usage and TSE positively impact DFI, with TSE significantly enhancing the association between fintech usage and DFI. Based on these findings, the study recommends that policymakers support fintech adoption through targeted education programs to improve TSE among rural women. Additionally, user-friendly interfaces and supportive systems are crucial in overcoming technological barriers and boosting confidence. However, limitations include the study’s cross-sectional approach, focus on women vendors in a specific district, and potential social desirability bias. Future research should consider longitudinal studies, cultural aspects of fintech adoption, and mixed-methods data collection to deepen understanding of the variables.

Machine learning, banking, industry, digitalization, innovation

Aim: The application of artificial intelligence (AI) offers an encouraging avenue for developments in the banking industry. Methods: The study adopted a scoping review of methodology to provide a comprehensive overview of relevant research regarding the potential uses and challenges of AI in banking. Consumer expectations have evolved, emphasizing features such as payment gateways, swift transactions, and resilient banking services. Results: Major utilization of the AI in banking industry includes enhanced customer engagement, satisfaction, and relationships, personalized financial guidance, smart digital wallets, regulation compliance and collaborative efforts, forecasting, tracking market trends, decision-making and problem-solving, anti-money laundering and fraud detection, automation of repetitive, large and time-intensive tasks, enhanced cybersecurity, and opportunity for digital financial inclusion. Conclusion: Users encounter challenges involving security issues, privacy concerns, and the complexity of technology in AI-driven banking services. Recommendation: While AI holds a crucial role in the banking industry, successful implementation demands ample allocation and consistent, predictable utilization of AI practices.

Digital inclusive finance and digital transformation of Chinese enterprises: Perspectives on company technology intensity and financialization

AbstractThis study explores the role of digital inclusive finance in company digital transformation within China, particularly examining the variances among companies with differing levels of technological intensity and financialization. Using A‐share Chinese data from 2011 to 2022, we find that regions with superior digital inclusive finance exhibit enhanced corporate digital transformation, regardless of the provincial or municipal level. Subindexes, including the coverage breadth, use depth, and degree of digital inclusive finance, confirm that they are all significantly positively related to digital transformation. These effects are more pronounced in companies with lower technological intensity, and corporate financialization serves as a mediating factor.

Public Service Equalization, Digital Financial inclusion and the Rural Revitalization: Evidence from Chinese 283 prefecture-level cities

While China has made significant strides in poverty alleviation, the persistent urban-rural divide poses challenges for sustainable development. Previous studies have explored various factors influencing rural revitalization, yet the interplay between public service equalization, digital financial inclusion, and rural development remains understudied. This research investigates how public service equalization impacts rural revitalization in China and examines the moderating role of digital financial inclusion. Using panel data from 283 prefecture-level cities from 2011 to 2021, we employ a fixed-effects model and conduct robustness checks including endogeneity tests and alternative specifications. Our findings reveal that public service equalization positively influences rural revitalization, with both accessibility and beneficiality dimensions playing crucial roles. Importantly, digital financial inclusion enhances this positive impact, suggesting a synergistic effect. These results underscore the need for a holistic approach integrating public service provision and digital financial services to promote inclusive growth in rural China. By elucidating the mechanisms through which these factors interact, our study contributes to the broader literature on rural development and offers policymakers valuable insights for designing effective rural revitalization strategies.

Digital inclusive finance and the resilience of households involved in financial markets

This paper develops a multidimensional framework composed of resistance ability, recovery ability and transition ability to measure the resilience of households involved in financial markets, and then discusses the impact of digital inclusive finance. Taking Chinese households holding financial assets as the research sample, we unveil that the majority of households display low financial resilience and there are great differences among them. We also discover that the development of digital inclusive finance has positive influence on household financial resilience, and the use of online financial services has a mediating effect.

E-commerce and air pollution: Evidence from China

E-commerce serves as an important link between the digital economy and the real economy, and contributes positively to income growth. In the face of resource constraints and serious environmental pollution, it is equally relevant to examine the environmental effects of e-commerce. Based on county panel data for China from 2011 to 2018, this study uses a difference in differences (DID) model to investigate the impact of Rural E-Commerce Demonstration County (REDC) policy on air pollution. This study reveals that the demonstration policy exacerbates air pollution in counties and the pollution effect is regionally heterogeneous. Additionally, the increase in temperature and precipitation weakens the pollution effects of the demonstration policy. Mechanism analysis indicates that the demonstration policy can promote the development of the secondary industry and digital financial inclusion at the county level, which subsequently leads to the deterioration of local air quality. Further analysis of costs and benefits reveals that the significant positive economic effects resulting from the demonstration policy far outweigh the indirect economic losses caused by air pollution. Therefore, when local governments actively promote the development of e-commerce in rural areas, they should also attach great importance to its potential negative environmental externalities.

The Financial Inclusion Question in Zimbabwe’s Post-COVID -19, New Normal: Implications for Adoption of Financial Technology (FinTech) on Service Providers

Financial inclusion will be accelerated by the technological opportunities for online financial transactions brought forth by the COVID-19 outbreak. As a result, because there were fewer digital financial transactions, the threats to COVID-19 that were present previously are now more substantial. The aim of this article is to assess the dangers, challenges, and opportunities for financial inclusion brought forth by the use of technology by COVID-19. According to the article, the inherent characteristics of financial technology (FinTech) in connection to financial inclusion allow it to reduce the negative economic and social effects of the ongoing COVID-19 situation. Under COVID-19, the introduction of digital financial transactions has sped up corporate operations and cut expense on doing business. As a result, women now have greater access to transactions involving financial technology (FinTech). The growth of digital financial transactions has made contactless and cashless purchases possible throughout the COVID-19 crisis. The expansion of digital financial inclusion makes it easier to swiftly and effectively implement public assistance programs, such as those for epidemic-affected women. Financial inclusion is being boosted by digital finance, which may eventually replace or improve traditional banking institutions. Working from home has undergone a "revolution" in a number of industries during COVID-19, including banking. Businesses should identify the optimal operating model mix for the future and make sure they have the infrastructure to support widespread, mass flexible working. This calls for reevaluating the function and application of corporate real estate. Since the labor force is likely to become more automated at the same time, resilience is essential. Conceptual Framework of this study is based on the financial inclusion and FinTech concepts which are the main variables guiding the study and it is underpinned by the theories of diffusion of innovation and the Financial Intermediation.

Financial development, electronic payments, and residents' consumption: Evidence from Rural China

The development of rural finance, by providing convenient credit, introducing modern financial services, and improving electronic payment systems, addresses the financial needs of rural residents, fosters the growth of rural industries, and improves the quality of life. This study utilizes provincial panel data from China covering the period 2011 to 2021 to examine the impact of rural financial development on the consumption levels of rural residents. The findings indicate that rural financial development exerts a significant positive influence on rural consumption, with rural electronic payments serving as a transmission mechanism in this relationship. A heterogeneity analysis further reveals that the effect of rural financial development on consumption levels differs according to the level of digital financial inclusion. Specifically, the positive impact is more pronounced in provinces with higher levels of digital financial inclusion compared to those with lower levels.

Environmental protection tax policy and corporate risk-taking: Evidence from China

The fight against pollution problems has sparked a myriad of Environmental Protection Tax (EPT) policies by governments across the globe. However, it remains unclear whether and how EPT affects the level of corporate risk-taking. To narrow the gap, this research selects the EPT policy implemented in 2018 as a quasi-natural experiment to test the effect of EPT on the level of corporate risk-taking by using the sample of Chinese listed firms from 2014 to 2022. The result finds that EPT could dampen the level of corporate risk-taking. Mechanism analysis shows that, the increased market attention, elevated financing costs, and raised investment in end-of-pipe pollution control are the mechanisms by which EPT reduces the level of corporate risk-taking. The “market pressure hypothesis” and “resource dependence hypothesis” of corporate risk-taking can help us better understand these three paths. Moreover, the heterogeneity analysis reveals that the disincentive effect is more pronounced in small enterprises, and those with high financing constraints and low institutional investor ownership. Meanwhile, the disincentive effect is also more pronounced for enterprises located in regions with underdeveloped digital financial inclusion and strong law enforcement. Overall, our findings contribute to a more comprehensive understanding of the impact of EPT on corporate risk-taking at the micro level and provide valuable insights for targeted policy enhancements.

Assessing the Influence of Digital Inclusive Finance on Household Financial Vulnerability in China: Insights from Health Insurance Participations

Assessing the Influence of Digital Inclusive Finance on Household Financial Vulnerability in China: Insights from Health Insurance Participations

Analysis of the Impact of Digital Inclusive Finance on the Well-being of Rural Residents

Improving the sense of well-being, gain, and security among rural residents has become one of the important tasks for promoting high-quality rural economic development and achieving rural revitalization. This paper, based on data from the China Household Finance Survey (CHFS) from 2015 to 2019, constructs an Ordered Probit model to study and analyze the impact and mechanism of digital inclusive finance on the well-being of rural residents. The results indicate that digital inclusive finance can enhance the well-being of rural residents, and the indices of coverage breadth, usage depth, and digitalization all have significant positive effects on the well-being of rural residents. In terms of the mechanism, digital inclusive finance improves the income of rural residents, promotes entrepreneurship among them, and enhances their financial literacy, thereby increasing their well-being. At the same time, digital inclusive finance has a greater impact on the well-being of samples from rural areas in the central and eastern regions, as well as among rural women and middle-aged and elderly groups.

Digital financial inclusion role to promote renewable energy technology innovation in Chinese prefectural cities: Moderating role of environmental governance

Renewable energy technology innovation is not only an important technical component of Chinese construction of low-carbon energy systems but also a key way to realize long-term, sustainable development. Digital inclusive finance plays an indispensable role in this process. Using panel data of 275 Chinese cities from 2011 to 2022, a two-step systematic methodology is used to assess the impacts and mechanisms of digital financial inclusion and the moderating role of different environmental governance models on qualitative and quantitative renewable energy innovation. The results indicate that digital inclusive finance has an incentive effect on both qualitative and quantitative renewable energy innovations, with a stronger incentive effect on qualitative behavior. This effect can act on renewable energy technology innovation by reducing financing constraints and incentivizing information disclosure mechanisms. Moreover, different forms of environmental governance have a positive, moderating effect, while the effect of top-down environmental governance is more manifested in quantitative renewable energy innovation. Furthermore, heterogeneity analyses show that the incentive effect of digital financial inclusion is more pronounced in the PV sector and the eastern regions. The findings provide a theoretical basis and practical insights that enable policy-makers to formulate relevant renewable energy technology innovation policies and promote low-carbon energy transition.

Digital financial inclusion, environment volatility and investment efficiency: demand and supply side experiences of Chinese listed renewable energy firms

Digital financial inclusion, environment volatility and investment efficiency: demand and supply side experiences of Chinese listed renewable energy firms

Current Situation of Digital Inclusive Finance in China

Inclusive finance is not only an innovation in financial service concepts but also an institutional arrangement to address the imbalance in social and economic development. Therefore, it is particularly necessary to study the current development status, development level, and challenges of inclusive finance and to conduct research on these issues. Overall, inclusive finance has demonstrated a positive momentum of development, but improvements are still needed in terms of market players, products and services, and the external ecosystem. China’s inclusive finance is still in its infancy, making it essential to accelerate its development and promote inclusive finance in the country.