Research On The Effects Of Digital Technology On Household Financial Inclusion In China

In the crucial stage of China's efforts to prevent and control the COVID-19,promote poverty alleviation and secure a decisive victory in building a moderately well-off society in all respects,financial inclusion has irrigated the inclusive society like rain showers and promoted the reform of the traditional financial system.In the new era swept by the digital wave,financial inclusion has ushered in important development opportunities.Digital technology is like a "double-edged sword".While bringing "digital dividends" to financial inclusion development,it may also create a "digital divide".Therefore,it is of great significance to explore the effects of digital technology on household financial inclusion in China and grasp its internal mechanism for promoting the sustainable development of financial inclusion.Based on defining the meaning of digital technology,financial inclusion and digital financial inclusion,sorting out relevant theories of financial inclusive development,proposing the mechanism of digital technology affecting financial inclusion and analyzing the development status of digital technology and financial inclusion,this paper studies the impact of digital technology on the financial inclusion of households using the Probit model based on the data of the 2017 Chinese household finance survey(CHFS).The study found that digital technology can bring "digital dividends" and significantly improve the level of household financial inclusion.The specific impacts are as follows: In terms of function categories,digital technology has a significant positive impact on household financial inclusion of investment,financing and life,and has the greatest impact on household financial inclusion of life.In terms of heterogeneity,digital technology has improved financial inclusion in socially disadvantaged groups such as rural areas,lower education levels and lower incomes more significantly.However,digital technology has a greater impact on household financial inclusion of financing and life in urban areas,higher levels of education and higher income of households.It means a certain degree of "digital divide".In terms of impact mechanisms,digital technology can improve household financial inclusion through three mechanisms: enriching financial knowledge,enhancing social interaction,and increasing risk appetite.The research conclusions are of great significance for China to cross the "digital divide",create "digital dividend" and further promote financial inclusion development to improve quality and efficiency.Therefore,this paper puts forward countermeasures to improve financial inclusion from the perspective of the state,institutions,and households.At the national level,government departments should take the sound financial inclusion legal and supervisory system as a guarantee,take the improvement of financial inclusion infrastructure construction as the cornerstone,and take the deepening financial supply-side structural reform as the point to optimize the financial inclusion ecological environment.At the institutional level,financial institutions should use digital technology as a "catalyst",financial availability as an "accelerator",and financial knowledge as a "booster" to practice the idea of financial inclusive development.At the household level,residents should take the enhancement of feasible capabilities as the starting point,the enhancement of social interaction as the focus,and the establishment of risk awareness as the key points to cultivate endogenous motivation for financial inclusion.