Narrow Results

Based on the characteristics of financial exclusion and income gap, this paper attempted to elucidate the fluctuation of China’s consumption rate through the mechanism of financial availability of low-income residents and its influence on household consumption in the reform era. The study showed that improving financial availability affects the consumption rate by increasing investment opportunities for low-income earners who can adjust the portfolio of composition. Meanwhile, this effect is affected by the income gap which plays a “threshold” role in the relationship between financial availability and consumption rate. Therefore, inclusive finance development must be adapted to economic development in order to prevent “too much finance”.

Based on survey data, we analyze the level of financial exclusion during the development of digital finance in the rural area of three Chinese provinces of Beijing, Tianjin and Hebei (Jingjinji). We use a censored probit model to examine whether there is financial exclusion and the degree of financial exclusion for the rural residents. The empirical results show that the significant factors influencing the financial exclusion in digital finance include the personal characteristics of the rural residents, the understanding of digital finance, digital financial infrastructure, the development of digital finance, and the social environment. Therefore, we think the precise orientation and distinction for the excluded group in the rural area, according to age, education, income, and other influencing factors could be helpful for making policies to eliminate financial exclusion and increase the inclusiveness of the financial industry.

The successful evolution of money and payment platforms in today’s world requires consumer adoption, which in turn requires access to knowledge about developing financial products. This is particularly the case in developing country contexts where the participation in publicly accessible financial payment platforms has been lauded as a means through which low income people can access financial resources, save, and build wealth. Using a qualitative approach and the knowledge gap hypothesis as a conceptual framework, the current study explores knowledge patterns and knowledge gaps in the context of two financial transitions in Ghana, West Africa. While general patterns in acquired knowledge were observed, income levels appeared to shape observed levels of knowledge. Implications for financial inclusion are discussed.