THE LEGAL ROLE OF FINTECH IN FINANCIAL INCLUSION IN CHINA

Abstract

The purpose of technology is not to make finance better, but to make finance serve real life better. Fintech has grown much faster in China than in the United States. In China, this success has come not from an initial technology advantage, but from integration between finance and real-life needs. This experience has important implications for understanding financial innovations, and for the development of inclusive finance. China has experienced a financial technology boom (Fintech), enabling it to be a world leader of the field. China's decision makers and authorities are promoting a digital vision the aim of which is to foster financial inclusion. Using FinTech as a catalyst for financial inclusion can be an effective and less costly solution for China. This study examines the leading role of FinTech in the efforts of the Chinese authorities towards financial accessibility in China. Using time series econometrics over the 2010 to 2020 period, we show that FinTech promotes financial inclusion. More specifically, the results show that only the access dimension can be promoted using FinTech. However, for the usage dimension, FinTech does not have a positive effect. Such findings should further encourage Chinese authorities to invest in FinTech to help remove barriers to financial inclusion.