The Impact Of Social Interaction On Household Digital Financial Products Use

Compared with traditional financial services,digital finance sinks deeper,covers more widely,has stronger customer reach ability,and can attract the attention of a large number of ordinary financial consumers.However,due to the dual attributes of technology and finance,to some extent,it increases the difficulty for families to screen information,evaluate risks and benefits reasonably,and make correct investment decisions.Considering the existing risks and "information threshold",the participation and investment of families in digital financial products are still limited.In the information age,the frequency and depth of social interaction are increasing day by day.Because of its function of information exchange,social interaction has become an effective and important source of information for family investment decisions.As a new type of investment and financial products,does social interaction promote the use of digital financial products similarly?Considering different types of digital financial products,is there heterogeneity in the promotion of social interaction?To solve these problems is of practical significance to encourage and guide the promotion of digital financial products,help families make better investment decisions and share the development results of Inclusive Finance.This article consists of five chapters.The first part is an introduction.Based on the research background of digital financial inclusion,it clarifies the research significance of this article,and introduces the research content of this article,the research methods to be adopted,and possible innovations and deficiencies.The second chapter is literature review,which reviews the literature according to the logical relationship between research elements,systematically summarizes the foundation theory in the field of family finance.And next,we theoretically expounds how social interaction affects the use of family digital financial products and the corresponding impact mechanism,and puts forward the research hypothesis.The third chapter briefly describes the current situation and characteristics of digital financial products used by households in China.The forth chapter is the empirical test,using the survey data of 2017 and 2019,summarizes the use of sample household digital financial products,and makes descriptive statistics on the use of different household digital financial products according to the characteristics of decision makers;this paper constructs Probit model,analyzes the direct impact of social interaction on the use of family digital financial products by urban and rural samples,tests the impact mechanism of social interaction by using intermediary effect model,and alleviates the potential endogenous problems by means of instrumental variable regression;finally,we divide digital financial products into payment,financial management,insurance and lending products according to their functions,and test the impact of social interaction respectively.Furthermore,using index replacement method,two proxy variables of social interaction are selected to ensure the stability of the results.The last chapter is the research conclusion and policy recommendations,mainly according to the above description analysis and empirical research method to draw the research conclusion and put forward policy recommendations,summarize the research of the full text,and put forward research prospects.The main conclusions of this paper are as follows:(1)Social interaction significantly improves the possibility of families using digital financial products.The more frequent the social interaction is,the higher the probability of using digital financial products is.After considering the potential endogenous problems,this conclusion still holds.(2)With the help of two variables of financial literacy level and trust degree to digital financial products of decision makers,this paper verifies two mechanisms of social interaction influencing the use of digital financial products by families.Under the two mechanisms of social interaction,decision makers improve the level of financial literacy through "Endogenous Social Interaction",enhance the trust degree to digital financial products through"Contextual Social interaction",and then significantly improve the possibility of using digital financial products.(3)Among the different types of digital financial products,social interaction plays a greater role in promoting the use of digital financial products and digital insurance products.Active social interaction can improve the concept of family financing investment and risk prevention with the help of digital financial products.Based on the above conclusions,this paper puts forward some policy recommendations:strengthen community construction to promote interpersonal communication with the help of"Endogenous Social Interaction" channels,improve decision-makers’ financial literacy and financial knowledge level,help families better optimize the allocation of family assets with the help of digital financial products.Furthermore,we should standardize the development of digital finance and protect the information security of consumers effectively.We also need to enhance the trust of residents in digital financial products,helping families across the self exclusion and information threshold,stimulating the enthusiasm of families to participate in the financial market and use financial products to the greatest extent.