Digital Financial Inclusion, Household Financial Participation and Well-Being: Micro-Evidence from China

Though financial inclusion has drawn a lot of attention lately, especially in emerging markets, it remains unclear how it affects household well-being. This study investigates the connection between digital financial inclusion (DFI) and household well-being using two databases in China. The findings suggest that DFI is positively associated with household well-being. Mechanism analysis reveals that a rise in DFI facilitates household financial participation, thereby increasing the probability of household well-being. Our further empirical analysis demonstrates that groups with lower education and income levels are more significantly affected by DFI regarding household well-being. Overall, the research provides empirical evidence for the assertion that expanding financial inclusion in the digital economy era can promote social fairness and provide a basis for a vigorous expansion of financial inclusion in emerging economies.

Automated summary

This study investigates the relationship between digital financial inclusion and household well-being in China using two databases. The findings show that digital financial inclusion is positively associated with household well-being. Mechanism analysis reveals that an increase in digital financial inclusion facilitates household financial participation and increases the probability of household well-being. Further analysis demonstrates that groups with lower education and income levels are more significantly affected by digital financial inclusion regarding household well-being. Overall, this research provides empirical evidence for the importance of expanding financial inclusion in the digital economy era in promoting social fairness and supporting the expansion of financial inclusion in emerging economies.