Empirical Study On Digital And Inclusive Finance And Bank Profitability

Since the importance of developing digital financial inclusion was highlighted at the 11 th G20 Summit and eight principles and 66 recommendations were adopted as a common agenda for developing digital financial inclusion,Chinese commercial banks have spared no efforts to develop their business activities.Create commercial banks current business coverage is more and more extensive,business content is more and more indepth,the digital degree of business is more and more high status.The development of digital financial inclusion not only provides more ways for people to obtain financial services,it enriches the types of financial services available and benefits more people at the bottom in the form of increased income channels,but it also alleviates business financing constraints and other difficulties.However,in the process of developing inclusive digital finance ventures,as the reform is comprehensive,it will impact all aspects of the bank,not just the growth of a single product.However,different banks differ in terms of customer acquisition,cost control,risk management and control,and independent innovation capabilities,so banks are affected to varying degrees.However,in the process of developing inclusive digital finance ventures,as the reform is comprehensive,it will impact all aspects of the bank,not just the growth of a single product.However,different banks differ in terms of customer acquisition,cost control,independent risk management and control and innovation capabilities,so banks are affected to varying degrees.However,in the process of developing inclusive digital finance ventures,as the reform is comprehensive,it will impact all aspects of the bank,not just the growth of a single product.However,different banks differ in terms of customer acquisition,cost control,risk management and control,and independent innovation capabilities,so banks are affected to varying degrees.not just the growth of a single product.However,different banks differ in terms of customer acquisition,cost control,risk management and control,and independent innovation capabilities,so banks are affected to varying degrees.not just the growth of a single product.However,different banks differ in terms of customer acquisition,cost control,risk management and control,and independent innovation capabilities,so banks are affected to varying degrees.While a large number of literatures have studied the effect of commercial bank profitability and the current development of inclusive digital finance,most of them study the general status of development of inclusive digital finance in China and its influence on small and large enterprises.,regional economy and other areas from a macro perspective,and few start from individual commercial banks.This article explores the influence of individuals in the process of developing inclusive digital finance,and there is also a gap in building the individual digital finance index of commercial banks.As the development of inclusive digital finance is not long overdue,its impact on the profitability of individual commercial banks has not been widely tested.This article tries to investigate how the development of digital inclusive finance affects the profitability of small and medium commercial banks from a profitability point of view.First,based on theory,this article analyzes theories related to digital inclusive finance,commercial bank profitability,financial innovation and other concepts,as well as the current development status of Chinese small and medium-sized commercial banks in financing foreclosures.digital inclusions.Second,it selects 36 small and medium-sized commercial banks as research objects,draws lessons from the ideas of other scholars to create a digital index of inclusive finance in a broad sense,and builds the digital inclusive finance development index based on commercial bank development indicators.After adding the control variables,it performs empirical analyzes through the fixed effect regression model.By comparing commercial banks of different natures,the aim of the investigation is to determine whether the development of digital inclusive finance has a positive or negative impact on the profitability of small and medium-sized commercial banks,as well as the reasons for the different results in different groups,and change indicators to measure efficiency for durability requirements.At the same time,it also examines whether finance innovation plays an intermediary role in the mechanism by which the development of inclusive digital finance affects its profitability.The conclusion is that the development of digital inclusive finance in small and medium-sized Chinese commercial banks is negatively correlated with their profitability in the full sample,and this effect is particularly significant in urban commercial banks.Although the results show that the development of digital inclusive finance has a significantly positive impact on the ability to The conclusion is that the development of digital inclusive finance in small and medium-sized Chinese commercial banks is negatively correlated with their profitability in the total sample,and this effect is particularly significant in urban commercial banks.Although the results show that the development of digital inclusive finance has a significantly positive impact on the ability to The conclusion is that the development of digital inclusive finance in small and medium-sized Chinese commercial banks is negatively correlated with their profitability in the full sample,and this effect is particularly significant in urban commercial banks.Although the results show that the development of digital inclusive finance has a significantly positive impact on their own innovation ability,financial innovation does not play an intermediary role.Finally,on this basis,from the perspective of commercial banks and the government,this paper tries to make suggestions for improving the sustainability of digital inclusive financial development and improving the profitability of commercial banks.