Digital Inclusive Finance And Family Wealth Gap

In the context that our country is making solid strides toward common prosperity,it is requisite to make the most of finance.Digital inclusive finance can actively develop common prosperity and the role of reducing the gap between rich and poor is self-evident.Research has shown that digital inclusive finance can significantly alleviate the urban-rural income gap.However,income is only one part of wealth,what’s more,wealth is more objective than income.Therefore,it is imperative to explore the impact of digital inclusive finance on household wealth gap from the level of micro wealth gap.This paper firstly sorted out and organized the existing literature related to digital inclusive finance,income gap and wealth gap,and roughly clarified the research status and development trend of the academic community.Secondly,in order to carry out the follow-up paper,research theory of digital inclusive finance and family wealth gap,SMOTE algorithm and information asymmetry theory were introduced.Once again,we disposed the relevant data,and construed the current situation of China’s digital inclusive finance,household survey data wealth,and rich list wealth.We focused on the high-end groups on the Forbes list of China’s rich,and re-measured the wealth gap of all groups in combination with household survey data.Finally,we put forward some research hypotheses to explore these issues.Through the empirical test of the number of inter-provincial panels in 25provinces(districts,cities)in China from 2012 to 2019,the following conclusions can be drawn: First,digital inclusive finance can availably reduce the family wealth gap,and presented an "inverted U-shaped" relationship.When the value of digital inclusive finance was less than the inflection point of 1.787,the family wealth gap will increase,but when the value of digital inclusive finance exceeded the inflection point,it will narrow the family wealth gap for a long time.Second,the reduction of family wealth gap by digital inclusive finance was reflected in the expansion of coverage,depth of application and degree of digitalization,then the influence relationship showed an "inverted U-shaped" trend.Thirdly,the effect of digital inclusive finance varied from place to place,which was represented by regional diversity.Through empirical research,this paper found that in the eastern and western regions,the relationship between digital inclusive finance and family wealth gap presented an "inverted U-shaped" feature,while the impact on family wealth gap in the central region was not obvious.This paper puts forward the following policy recommendations for the conclusion: First,we should make full use of the advantages of digital inclusive finance to promote the construction of China’s digital inclusive finance development system to solve the structural imbalance between the supply and demand sides of digital inclusive finance.Secondly,the popularization of digital inclusive finance should fully consider the needs of vulnerable groups in all aspects to meet their financial needs.This can be achieved by strengthening the mastery of financial knowledge,improving the level of financial service literacy,changing the inherent concepts and habits,and correctly understanding the practical convenience that financial service products bring to life.In this way,we can optimize the allocation of residents’ assets and increase the accumulation of wealth.Finally,the progress of digital inclusive finance is usually accompanied by regional imbalances.Relevant financial policies have been issued according to local conditions,which can explore a new path for the development of digital inclusive finance to the greatest extent in combination with their own resource endowment,narrow the wealth gap between families,and move forward to common prosperity.