Analysis of the Impact of China's Digital Technology on Inclusive Finance

This paper focuses on the impact of digital technology on inclusive finance in China. By reviewing existing literature, it systematically analyzes the current development status, specific impacts, and challenges of digital technology (including big data, artificial intelligence, and mobile payments) empowering inclusive finance. This review of existing literature and current research reveals that digital technologies such as big data and artificial intelligence have significantly improved the coverage, convenience, efficiency, and risk management capabilities of inclusive finance by breaking through geographical limitations, optimizing service processes, and improving risk control systems. This has driven the transformation and innovation of traditional financial institutions and expanded their service coverage. However, the application of digital technology also faces certain practical challenges. These include the digital divide faced by some elderly and low-income groups due to device access barriers, uneven development across provinces and regions, and regulatory loopholes and user data security issues arising from the development and application of emerging digital technologies, which continue to hinder the further development of digital inclusive finance. By conducting a literature review, this paper systematically analyzes and summarizes the dual impacts of digital technology on inclusive finance and anticipates its trend toward precision and intelligent development. This paper provides theoretical references for promoting the high-quality development of digital inclusive finance.