The Impact Of Digital Inclusive Finance On Family Financial Market Participation

With the deepening of China’s reform and opening up,resource allocation has gradually changed from a purely planned approach to a market-led economic development model.Economic system reform has promoted the rapid development of China’s economy,and the increase in household income has accelerated the accumulation of household wealth.However,the matching family financial market has lagged behind,making China’s resident financial market participation rate low.Although financial development has greatly improved the availability of financial services in China,judging from relevant statistics,the financial participation of households in China is still not optimistic.At the G20 International Summit in September 2016,the Chinese government first proposed the development of digital inclusive finance,advocating the use of digital technology to increase the level of inclusive finance in the financial system,thereby increasing the financial participation of our residents.As a new development direction of inclusive finance,digital inclusive finance has the characteristics of wide coverage,low participation cost and high information transparency.It can make up for the deficiencies in the services of traditional financial institutions to a large extent and improve the level of residents’ financial participation.In view of this,this paper empirically explores the impact of digital inclusive finance development on household financial market participation.First,through the introduction of digital inclusive finance related theories,the ways in which the development of digital inclusive finance affects household financial market participation are analyzed.It is believed that digital inclusive finance can increase the coverage of financial services,improve the efficiency of financial service supply and reduce participation Cost and other three aspects to improve household financial market participation.After that,this article uses the data of the 2014-2016 CFPS survey and uses the probit model to empirically test the impact of digital inclusive finance on household financial market participation.The probability of asset market and Internet business activities,this result remains consistent under a variety of robust conditions.Through the empirical test of urban and rural,income and regional heterogeneity,it is found that the development of digital inclusive finance still has a certain degree of financial exclusionfor rural areas,central and western regions and low-income groups.Further examination revealed that this exclusion may be due to factors such as insufficient Internet use by residents and lack of financial knowledge.On the basis of theoretical and empirical tests,this paper draws the following conclusions: First,the development of digital inclusive finance can significantly increase the probability of Chinese households participating in the savings market,commercial insurance market,risky asset market,and Internet business activities,but not yet It can improve the level of participation of residents in the credit market;second,there are group differences in the promotion effect of digital inclusive finance on the participation of residents in the financial market,which fails to effectively increase the probability of rural areas,central and western regions,and low-income groups participating in the financial market;third,Insufficient use of the Internet and lack of financial knowledge have restricted the promotion of digital inclusive finance in rural areas,central and western regions,and low-income families’ financial participation.In this regard,this article proposes the following suggestions to improve the level of household financial participation of our residents: first,accelerate the integration of traditional financial institutions and digital technology;second,accelerate the construction of personal credit system and expand the scope of credit;third,improve the financial literacy of residents and reduce Financial exclusion;Fourth,raise the level of supporting facilities for digital inclusive finance in rural and other underdeveloped areas.