Using Internet Technology And Its Financial Format To Develop Inclusive Finance

With the development of the world economy,there are many problems which make the current economy system difficult to maintain,such as excessive gap between the rich and the poor,uneven distribution of resources,and prominent social contradictions in the economic system.In the traditional financial system,from a micro perspective,financial institutions provide services around large-scale customers,which makes it difficult to solve the problem of financial services for the small and medium-sized enterprises as well as the low-and middle-income people.From a macro perspective,financial services in developed regions are prosperous but in poor areas the situation is opposite.The poor region is in a state of financial desertification,and there is a serious financial exclusion within the entire financial system.This kind of financial exclusion has led to the formation of an unbalanced financial dual structure.The main manifestations of this structure are: on the one hand,the financial resources of developed countries and regions,core cities,large enterprises and high-income people are rich in configuration and even supersaturated.On the other hand,developing and underdeveloped countries and regions,poor and remote cities,small and medium-sized enterprises and low-and middle-income people have strong financial demand but are severed supply shortages.In order to solve the problem of financial service imbalance,the concept of inclusive finance came into being.The connotation of inclusive finance is to improve from the financial system.With diversified and personalized financial supply services,all people with financial needs can enjoy the financial services they deserve,achieve equality in financial resources,and realize the fairness of resources distribution.However,there are serious differences among the parties on the theoretical establishment and practice of inclusive finance and its development path.This disagreement restricts the development of inclusive finance to a certain extent.The experience of developing inclusive finance in some countries proves that inclusive finance,which relies solely on government policies,is difficult to maintain.The main reason is that the high cost of implementation has made it difficult for inclusive financial institutions to provide financial services continuously,and information asymmetry has caused inclusive financial institutions to be exposed to huge credit risks.Therefore,we must try to promote the development of inclusive finance through other means.Internet finance is a financial innovation product based on the convergence of new technologies in the context of the new era.Its unique low cost and high degree of information symmetry have a great effect on inclusive finance.Combining the intrinsic characteristics of Internet finance and inclusive finance,this paper uses financial innovation theory and industry combination theory to demonstrate the feasibility of using Internet finance to promote the development of inclusive financial systems,and to analyze the case of inclusive finance through other developing countries.Finally the article will try to summarize the feasible path for China to use Internet finance to promote the development of inclusive finance.In order to further verify the relationship between Internet finance and Inclusive finance,the data range selected in this paper is the monthly data from January 2014 to February 2019.The logarithm of the total amount of personal loans represents the development of inclusive finance as a dependent variable.The logarithm of the P2 P turnover and the logarithm of the scale of Internet consumer financial transactions represent the development of Internet finance as two independent variables.The error correction model was introduced to linearly regression based on data selected,and we finally verified the driving effect of Internet finance on inclusive finance.