Spatial-temporal Evolution and Influencing Factors of Digital Financial Inclusion: County-level Evidence from China

The vigorous development of information and communications technology has accelerated reshaping of the financial industry. The COVID-19 pandemic has further catalyzed the demand for digital financial services. Digital financial inclusion relies on information technology to overcome spatial limitations. In this case, the research question is whether it adheres to the spatial laws governing conventional financial activities. This study uses exploratory spatial data analysis and a geographical detector to elucidate the spatiotemporal characteristics and factors influencing digital financial inclusion at the county level in China(Data don’t include that of Hong Kong, Macao and Taiwan of China) from 2014 to 2020. The research findings indicate: first, China’s county-level digital financial inclusion is generally increasing and exhibits significant spatial autocorrelation. Second, population density, level of traditional financial development, government regulation, and education level are key determinants of China’s county-level digital financial inclusion. Third,policies should be differentiated by region to narrow the spatial gap in digital financial inclusion. The results provide a reference for other developing countries on using digital technology to develop financial inclusion.

The impact and heterogeneity analysis of digital financial inclusion on non-farm employment of rural labor

This study examines the effects of digital financial inclusion on non-farm employment of rural labor and the mediating mechanism of innovation and entrepreneurship activity using China Family Panel Studies(CFPS)and the provincial index of digital financial inclusion.Through the empirical test of the Probit model and mediation effect model,we found that:firstly,digital financial inclusion can promote non-farm employment of rural labor,with the level of digitalization having the most significant impact;secondly,by encouraging innovation and entrepreneurial activity,digital financial inclusion can promote non-farm employment of rural labor;thirdly,the driving effect of digital financial inclusion on non-farm employment of rural labor is more pronounced among the unmarried,eastern region,and male labor.Therefore,we should improve the construction of rural digital infrastructure and accelerate the development of inclusive rural finance to promote more diversified non-farm employment options for“disadvantaged groups”;encourage and support innovation at the government level,and create a favorable atmosphere for innovation and entrepreneurship.Simultaneously,farmers’digital literacy and financial knowledge should be improved so that more can adopt and take advantage of digital financial inclusion.

Blockchain-Based System for Secure and Efficient Cross-Border Remittances: A Potential Alternative to SWIFT

This paper proposes a blockchain-based system as a secure, efficient, and cost-effective alternative to SWIFT for cross-border remittances. The current SWIFT system faces challenges, including slow settlement times, high transaction costs, and vulnerability to fraud. Leveraging blockchain technology’s decentralized, transparent, and immutable nature, the proposed system aims to address these limitations. Key features include modular architecture, implementation of microservices, and advanced cryptographic protocols. The system incorporates Proof of Stake consensus with BLS signatures, smart contract execution with dynamic pricing, and a decentralized oracle network for currency conversion. A sophisticated risk-based authentication system utilizes Bayesian networks and machine learning for enhanced security. Mathematical models are presented for critical components, including transaction validation, currency conversion, and regulatory compliance. Simulations demonstrate potential improvements in transaction speed and costs. However, challenges such as regulatory hurdles, user adoption, scalability, and integration with legacy systems must be addressed. The paper provides a comparative analysis between the proposed blockchain system and SWIFT, highlighting advantages in transaction speed, costs, and security. Mitigation strategies are proposed for key challenges. Recommendations are made for further research into scaling solutions, regulatory frameworks, and user-centric designs. The adoption of blockchain-based remittances could significantly impact the financial sector, potentially disrupting traditional models and promoting financial inclusion in underserved markets. However, successful implementation will require collaboration between blockchain innovators, financial institutions, and regulators to create an enabling environment for this transformative system.

Has expansion of mobile phone and internet use spurred financial inclusion in the SAARC countries?

Exclusion from the mainstream financial world is a burden on the poor of many countries.The proliferation of new mobile and online financial services,such as e-banking,money transfers,and payment processing has the potential to provide access to basic financial products and services to financially excluded people.The purpose of this study was to investigate the effects of the growth of mobile phone and Internet use on financial inclusion in the South Asian Association for Regional Cooperation(SAARC)countries from 2004 to 2014.We applied principal component analysis to construct a financial inclusion index that served as a proxy variable for the accessibility of financial services in the SAARC countries.Using three different models-the fixed effect,random effect,and panel correction standard errors modelsthis study discovered a positive and significant relationship between the growth of financial inclusion and expansion of both mobile phone and Internet services.Moreover,an empirical study of the control variables showed that the levels of income and education were positively associated with financial inclusion,whereas the size of the rural population and unemployment were negatively related to financial inclusion.In addition,the empirical estimates posit a unidirectional causal flow from the growth of mobile and Internet services to expanded financial inclusion in the SAARC countries.

The Internal Logic Between the Inclusive Financial System Development and Poverty Reduction

This paper introduces the origin of Inclusive Financial System, summarizes the basic theories and views on inclusive financial system development and poverty reduction from experts and scholars at home and abroad. The paper establishes a theoretical analysis framework which impacts poor family income gap by using exponential smoothing method. The government should improve the credit market in poverty- stricken area by the way of macro-management to establish inclusive financial system, to overcome the difficulty of poor farmers＇ credit, to make more poor families to obtain credit opportunities.

The Logic of Digital Finance in the Age of Digital Economy

This paper explores the development logic,trends,and challenges of digital finance in the era of the digital economy.As a crucial component of the digital economy,digital finance has completely transformed the traditional financial services model through factors such as technological innovation,data intelligence,and personalized user experiences,paving the way for new business models and market opportunities.However,the rapid development of digital finance also faces challenges such as competition,security,and regulation.This paper emphasizes the importance of finding a balance between innovation and security in the development of digital finance and discusses the potential of digital finance in promoting financial inclusion and sustainable development.Through comprehensive analysis,this paper aims to provide valuable insights for academic researchers and industry practitioners,promoting the healthy development of digital finance.

A Deep Dive into the Trajectory and Transformation of Fintech in Colombia Through the Case of PTM Colombia-A Secondary Publication

This research focuses on analyzing and understanding the evolution and impact of fintech companies in Colombia,using PTM Colombia as a case study,a company that has undergone a significant transformation from its beginnings as a provider of physical recharges to its current position.as a comprehensive platform for digital financial services.The current research uses a qualitative descriptive approach and emphasizes understanding the perceptions and experiences in the field of Fintech in Colombia,particularly in the case of PTM Colombia.The study revealed that adaptability and customer orientation have been fundamental in the evolution of PTM,allowing the company to expand its range of services by actively listening to the needs of its users and adjusting its strategies accordingly.In addition,an accelerated and diversified growth of Fintech will be observed in Colombia,particularly in sectors such as credit and payments,driven by a constantly advancing technological environment and a regulatory framework that,although it presents challenges,also offers opportunities for financial innovation.This growth has impacted the traditional banking sector,which,instead of being replaced by Fintech,is finding new forms of collaboration and coexistence that benefit both parties and,above all,the end consumer.In conclusion,the study highlights how Fintech in Colombia,represented by cases such as PTM,is redefining the financial landscape through the adoption of advanced technologies,collaboration with traditional banking,and strong customer orientation.

How does financial literacy impact on inclusive finance?

Inclusive finance is a core concept of finance that makes various financial products and services accessible and affordable to all individuals and businesses,especially those excluded from the formal financial system.One of the leading forces affecting people’s ability to access financial services in rural areas is financial literacy.This study investigated the impacts of financial knowledge on financial access through banking,microfinance,and fintech access using the Bangladesh rural population data.We employed three econometrics models:logistic regression,probit regression,and complementary log–log regression to examine whether financial literacy significantly affects removing the barriers that prevent people from participating and using financial services to improve their lives.The empirical findings showed that knowledge regarding various financial services factors had significant impacts on getting financial access.Some variables such as profession,income level,knowledge regarding depositing and withdrawing money,and knowledge regarding interest rate highly affected the overall access to finance.The study’s results provide valuable recommendations for the policymaker to improve financial inclusion in the developing country context.A comprehensive and long-term education program should be delivered broadly to the rural population to make a big stride in financial inclusion,a key driver of poverty reduction and prosperity boosting.

Financial Exclusion and Inclusive Finance

Inclusive finance is intended to address the barriers posed by financial exclusion to economic development. Therefore, an effective inclusive financial system must be designed to address financial exclusion rather than to provide long-term policy subsidies for financial relief. Financial exclusion in China has causes in economic development strategy, financial institutional arrangement, financial market structure, dominance of social relations, and constraints of risk evaluation. Eliminating financial exclusion and increasing financial inclusion essentially requires that our financial system be equipped with those functions through policy adjustment, institutional innovation and improvement of market rules. Existing bottlenecks of financial risk management should be eliminated to provide fair opportunities of financing for projects that contribute to social development with limited deviations from traditional credit costs. Inclusive finance is sometimes confused with policy subsidies, financial assistance and poverty relief loans, which cannot reflect efficiency, fairness and inclusion as the essential attributes of inclusive finance. The existing financial system must be adjusted to enhance risk management performance and advance financial market stratification and competition by creating fair and efficient legal and credit systems.

Measurement of Rural Inclusive Financial Development and Analysis of Spatial Effects on Anti-poverty

Based on two dimensions of supply and demand,we use six indicators to establish a rural inclusive financial development index and evaluate the development of China's rural inclusive finance. We use spatial panel data model to examine the relationship between financial inclusion and rural poverty. Results show that:( i) both the rural inclusive finance and rural residents' per capita consumption present spatial clustering feature and show significant spatial correlation;( ii) the development of rural inclusive finance has significant spatial effect on poverty alleviation along time and space dimensions. In this study,the paper puts forward policy recommendations on strengthening the rural financial resources flow and constructing diversified rural inclusive financial system.

Estimating the effects of financial access on poor farmers in rural northern Nigeria

By recognizing the gap in the literature in examining the effects of financial resources and development outcomes at the household level,this paper examines whether the poorest income quintile would benefit most from programs aimed at increasing their access to financial services in rural northern Nigeria.Most households from this part of the world consist of farmers and,hence,are exposed to the vagaries of climate change.The data from 320 questionnaires administered in two rural communities(Rijau and Fakai)were analyzed using an ordered logit regression model.The results showed that access to financial services by using formal financial institutions and farmer savings clubs benefits vulnerable farmers(mostly women).The robustness check using the Brant test also confirmed that the parallel regression assumption of the model was not violated.A policy scenario that seeks to increase the delivery of financial services to rural farm households using community savings clubs and microfinance institution reforms for reaching the financially underserved was also found to benefit the poorest income quintile,hence,bringing them out of poverty.

Is the spatial impact of digital financial inclusion on CO_(2) emissions real?A spatial fluctuation spillover perspective

Digital financial inclusion(DFI)has the advantage of promoting information sharing,reducing transaction costs,and providing microloan platforms for small and medium-sized enterprises.It has also made outstanding contributions to decreasing CO_(2) emissions.However,the volatility correlation between DFI and CO_(2) emissions is still relatively unexplored.This research uses the spatial autoregressive process with conditional heteroscedastic errors(SARspARCH)model to evaluate the spatial fluctuation spillover impacts of DFI on CO_(2) emissions in 284 Chinese cities covering the period 2011-2016 following the IPAT model.The results indicate that CO_(2) emissions have significant spatial spillover and volatility effects.The fitted value of SARspARCH estimation results is more realistic than the SAR and spARCH model.DFI alleviates average CO_(2) emissions in Chinese cities.Moreover,spatial volatility weakens the negative influence of DFI on average carbon emissions.This study provides insights from which governments can strengthen inter-regional communication and synergistic emission-reduction capabilities,and promote the digitization of the financial sector to achieve carbon neutrality goals.

Do migrant remittances matter for financial development in Kenya?

The paper analyzes the relationship between remittances and financial development using Kenyan quarterly data from 2006 to 2016.Five different indicators of financial development are used:credit to the private sector as a share of GDP,the number of mobile transactions,the value of these mobile transactions,the number of mobile agents,and the number of bank accounts.The results from using an autoregressive distributed lag demonstrate a strong,positive relationship between remittances and financial development in long-run equations.This suggests that higher levels of remittances provide opportunities for recipients to open bank accounts,enhance their savings,and access financial systems,in addition to exposing the previously unbanked to both new and existing financial products.The results also confirm the potential advantage of embracing modern and advanced technology to facilitate international mobile transfers.Using international remittance transfers through mobile technology reduces costs by eliminating the need for physical branches and personnel to attend to walk-in customers.Aside from offering convenience and safety for remittance actors,this method also dominates traditional remittance business models.Therefore,a policy window exists for the government to leverage on remittances as a tool of financial inclusion and depth,and particularly through the continued expansion of regulatory space to accommodate the wider use of international mobile remittance transfer channels.Moreover,given the strong,positive relationship between remittances and credit to the private sector as indicated by its share of GDP and number of bank accounts,commercial banks and other players in the remittance market may also find it useful to develop customized products for migrants to access their remittances.For example,financial intermediaries can consider providing better deposit interest rates for diaspora deposits compared to deposits made in the local currency.Further,these institutions can allow regular remittance flows to act as collateral for the allocation of credit,among other incentives to tap into the significant potential of money remitted by migrants to Kenya.The study also recommends that the government consider expanding exploitation of diaspora bonds and diaspora savings and credit cooperative societies while drawing lessons from other countries’previous attempts.

Investigating the implications of technological innovations,financial inclusion,and renewable energy in diminishing ecological footprints levels in emerging economies

The correlation between technological innovation,economic growth,renewable energy,and ecological footprint carries significant policy implications for environmental sustainability.Furthermore,financial inclusion can drastically affect the technology-climate nexus across different countries and its moderating impacts have received sufficient attention.To do this,this study examined how technological innovation,financial inclusion,economic growth,and renewable energy affected emerging economies’ecological footprint from 1990 to 2019.Additionally,this study also scrutinizes the moderating role of financial inclusion with other regressors on ecological footprint.To account for structural shifts,disguised cointegration,and numerous breaks in panel regression,this study applies advanced panel estimation methods for empirical analysis.The estimated outcomes exhibit that the influence of technical innovation,climate technologies,and renewable energy significantly reduces the ecological footprint levels.Besides,economic growth and financial inclusion significantly increase the ecological footprint levels in the emerging economies.Furthermore,the integration of innovative technology and renewable energy in emerging countries mitigates the adverse effects of financial inclusion by making it easier for creative technologies and reducing ecological footprints.These results show that emerging countries’innovative technology and renewable energy sources should be integrated with financial inclusion to enable longterm mitigation of environmental damages and sustainable growth.Based on these estimated findings,the research recommends that emerging economies should hasten technological innovations along with stronger financial development to curtail ecological concerns without hindering the pace of sustainable economic growth.

The impact of financial inclusion on digital payment solution uptake within the Gulf Cooperation Council Economies

Recognizing the role of society in the sustainability of payment system innovation through the quadruple helix framework,this study analyzes the causal influence of demand-side financial inclusion indicators on society's uptake of digital payment solutions(DPS)within the regional economy of the Gulf Cooperation Council.To this end,the present study relies on data extracted from Global Findex surveys(in 2014 and 2017),as well as the economic theory of random utility maximization,to model individuals'DPS uptake decisions“ceteris paribus.”The maximum likelihood estimation revealed no gender-based gradient in DPS uptake behaviors;additionally,financial inclusion indicators such as transaction account ownership and debit card ownership did not significantly influence endogenous or exogenous DPS uptake decisions between 2013 and 2017.However,all remaining financial inclusion indicators did significantly influence DPS uptake.Assessing these findings through the lens of open innovation and the ongoing efforts from the Arab Regional Payment System project,which seeks to expand financial inclusion by facilitating access to transaction accounts,there is reasonable evidence to suggest that complementary financial inclusion policies addressing the use dimension of DPS(i.e.,extending access to saving and borrowing,along with digital payroll practices for both private and public enterprises)would contribute to more effective policy on financial inclusion in the region.

The Impact of Digital Financial Inclusion on Agricultural Mechanization:Evidence from 1,869 Counties in China

In light of China's generally backward agricultural mechanization levels,it becomes crucial to shore up this weak link with endogenous driving force.The digital financial inclusion offers a approach to addressing the challenges related to agricultural mechanization.This study,collecting data from 1,869 counties and using the Spatial Autoregressive Model with Spatial Autoregressive Disturbances(SARAR model),analyzes the equilibrium and disequilibrium effects of digital financial inclusion on agricultural mechanization,as well as the mechanisms through which digital financial inclusion operates.The findings indicate that both digital financial inclusion and agricultural mechanization exhibittspatialspillovereffects.The development of digital financial inclusion emerges as a significant driver for promoting agricultural mechanization.Furthermore,the impact of digital financial inclusion on agricultural mechanization varies based on the level of agricultural economic development,with counties characterized by less developed agriculture,plain topography,and strong agricultural sectors benefiting more from digital financial inclusion.Additionally,digital financial inclusionini directlyboosts agricultural mechanizationby increasing farmers income and encouraging investment in fixed assets.Therefore,it is crucial to harness the benefits brought by the development of digital financial inclusion while promoting agricultural mechanization,and regions should tailor their approaches to promote digital financial inclusion development according to their local conditions.

Digital Financial Inclusion and Consumption Smoothing in China

In this paper,we investigate the effect of digital financial inclusion(DFI)on household consumption smoothing in China.We use four waves of the biennial China Family Panel Studies from 2010 to 2016,during which time DFI has significantly developed alongside financial technology across China.We split household income shocks into permanent and transitory components,and evaluate if DFI may help households to buffer against these shocks.We find that households are not able to insure against permanent shocks to income,but they can smooth approximately 70 percent of transitory shocks to income.We also find that DFI has diminished households'ability to insure against transitory income shocks.This is partly because online purchase may lead to the oversensitivity of consumption to income.In addition,we find that contrary to DFI,traditional financial sector development contributes to better household consumption smoothing against transitory income shocks.

Climate change and financing adaptation by farmers in northern Nigeria

This paper examines farmers’perceptions of their exposure to climate change in rural northern Nigeria.It also examines whether there is a significant relationship between the exposure of farmers to climate change and their need for financial access as an adaptation strategy.Questionnaires were administered to 320 respondents in rural communities in northern Nigeria.Descriptive analysis shows that rural farmers are affected by climate change through increased temperature,prolonged dry seasons,floods,and drought,which lead to low harvest and,in turn,low income.An estimate from a non-parametric test also shows a significant relationship between farmers’perceived exposure to climate change and their need for credit.Although the Spearman correlation results show a 63%association between exposure to climate change and the need for finance,96%of those seeking credit to mitigate these impacts would be unable to do so due to financial exclusiveness.The paper recommends that the Central Bank of Nigeria should ensure that microfinance institutions refocus their products/services to those who need them the most in order to enhance access to financial resources and enable farmers to build resilience that will maximize post-harvest gains.Lastly,considering that climate change is a global phenomenon with local effects,perhaps the international community could support lending to smallholder farmers through central banks by insuring the loans that banks give to farmers towards financing climate change adaptation strategies.

Moving past the rhetoric： Policy considerations that can make Sino-African relations to improve Africa＇s climate change resilience and the attainment of the sustainable development goals

Climate change is a threat to the attainment of the Sustainable Development Goals(SDGs) in sub-Saharan Africa as its impacts can lead to increased incidences of poverty and inequality which can subsequently lead to a 12% decline in the Human Development Index(HDI) for subSaharan Africa. Emerging countries such as China have the potential to support Africa to achieve the SDGs by pioneering Southe South Climate Finance(SSCF) modalities. In order to increase knowledge on climate informed development and the role of China in global climate governance, the paper examined various research articles, case studies, policy briefs and project reports. Sino-African aid, investments and trade were noted as essential in mitigating Africa's climate change vulnerabilities which induce poverty traps and inequality. Some African countries were noted to have a comparative advantage in environmental standards over China but lacked the initiative to use this comparative advantage to enhance the Forum on Chinae Africa Cooperation(FOCAC) and assist China to have a sustainable growth trajectory. The paper concludes that SSCF modalities can enhance climate risk management in Africa if they focus on improving financial inclusion and improving climate finance flows towards climate change adaptation activities in Africa. Additionally, to increase the effectiveness and impact of Chinese climate finance support to Africa, African policymakers should not allow political and market forces to decide how climate related support from China should be allocated as decisions based on political and market forces could potentially promote an inequitable distribution of funds and ignore the most vulnerable countries and regions.

Financial inclusion in China:an overview

Financial inclusion has become an important development strategy in many countries,and related research is increasing.Financial inclusion in China has had significant progress recently.It has gradually formed a unique and sustainable development path with supporting policies and regulations as well as rapid development and application of digital technology.While challenges remain,the experience of Chinese financial inclusion provides valuable lessons and research directions for policymakers and researchers.