Promoting China’s Inclusive Finance Through Digital Financial Services

Abstract

While much progress has been made in promoting inclusive finance through the ownership of a basic personal account, billions of people in developed and emerging markets are still underrepresented in financial services. Also, they are unable to contribute to the provision of better access to financial services. The purpose of this study was defined as to explore the contribution of digital financial services (DFSs) in promoting inclusive finance in China. This study presents a theoretical discussion on how DFSs play an important role in promoting China’s inclusive finance. This study uses the systematic review method of qualitative sampling to achieve the goal of this study. Different forces play different roles behind the promotion of inclusive finance. However, DFSs are considered to be one of the most influential forces in the development of inclusive finance in the present world. Many examples of how DFS can improve inclusive finance are discussed in the literature. In addition, different contributions to DFS usage are presented here to achieve the objectives of this study. The contents of the study contributed to a better understanding of the practical impact and implication of DFS tools in transforming the financial sector. In this study, first, a structured review method is followed; second, most important discussion on the contribution of DFS in promoting inclusive finance is presented and third, the relation between the topic and related research is identified.

Current landscape and influence of big data on finance

“…Figure 1 presents the structured and systematic data collection process of this study. Certain renowned publishers, for example, Elsevier, Springer, Taylor & Francis, Wiley, Emerald, and Sage, among others, were prioritized when collecting the data for this study [35,36].…”

Evaluating Drivers of Fintech Adoption in the Netherlands

“…Fu and Mishra (2020) explore the global impact of COVID-19 on fintech adoption and find that market size and demographics are global drivers of fintech adoption. Hasan et al (2020) examine the importance of digital financial services to promote financial inclusion in China and make a valuable contribution by addressing the possible forces responsible for the promotion of digital financial services in the country. The study uses a qualitative method and applies a systematic literature review to provide the necessary evidence for the promotion of digital financial services in China.…”

Comparing Digital Finance in the UK, US, India and Nigeria

“…Weihuan et al (2015) argue that there is a need to regulate the development of digital financial services and Fintech, and at the same time, balancing growth and innovation with financial stability. Hasan et al (2020) show that mobile payment systems are among the best tools for the development of inclusive finance in China. They suggest that financial sector authorities should give increasing priority to promote innovation and the use of technology to improve inclusive finance and consumer protection.…”

“…Also, Nigeria has higher debit card usage than India while India has higher credit card usage than Nigeria. This paper contributes to the digital finance literature (see, Ozili, 2018, Hasan et al, 2020Ketterer, 2017;Ligon et al, 2019;Rana et al, 2019). It builds on the work of several authors that investigate the proliferation of digital financial services in the financial sector (Karlan et al, 2016;Bachas et al, 2018;Staschen et al, 2018).…”