Analysis of Factors Affecting Digital Financial Inclusion: Ecosystem View of 31 Provinces in China

This study aims to research factors promoting digital financial inclusion in China. The author analyses the ecosystem of 31 provinces in China using the fuzzy-set qualitative comparative analysis method to build the configurations of components that drive digital financial inclusion. Results show that generally there are three macro factors affecting digital financial inclusion: (1) high development of education, tertiary industry, urbanization and government support without income inequality; (2) high development of education, tertiary industry, urbanization, government support and financial regulation; (3) wide usage of internet and mobile phones, high development of tertiary industry, external trade, economy and urbanization without education; (4) high development of education, tertiary industry, external trade, urbanization and government support, wide usage of internet and mobile phones; (5) high development of education, economy, urbanization, government support and financial regulation, wide usage of internet and mobiles; (6) high development of tertiary industry, external trade, economy, urbanization and financial regulation, wide usage of mobiles in absence of education and income inequality. The results explore optimal combinations of factors beneficial to digital financial inclusion, enabling policy-making more effectively.