The Role of Digital Finance and Financial Inclusion in Economic Growth

Digital finance and financial inclusion have already become significant components of many countries financial system. Starting from the early 21th century, the researchers focus on building the developed digital finance and financial inclusion system. This paper concludes the development of digital finance and financial inclusion and then summarizes the three significant effects on small, micro enterprises and common residents according to the existing study, emphasizing the importance of the digital finance and financial inclusion to economic growth. The impacts include that digital finance can increase the efficiency of financial market by improving the success rate of two-way selection of both parties in the financial market, in addition to increasing the consumption quality of residents. This paper also points out that digital finance and financial inclusion will bring new risks to the financial market, and subsequent researchers still need to study how to make digital finance more stable and less risky.