Determinants of Digital Inclusive Financial Services in Anhui Province, China: The Mediating Role of Financial Performance

Digital inclusive financial service (DIFI) transcends spatial and temporal limits, aiding resource allocation between rural and urban areas, which is crucial for integrated urbanrural financial service systems.Anhui Province, in southern China, has seen rapid economic growth but lags in DIFI development, facing issues like urban-rural disintegration and exclusion from modern financial services.Most DIFI studies are macro-level or focus on a single factor, often overlooking regional financial service mechanisms.This study examines DIFI's spatial differentiation and contributing factors in Anhui using panel data from 16 cities (2011-2022).It finds varying economic and DIFI development across cities, with the gap in financial service accessibility narrowing in the past five years.Key factors influencing DIFI include economic growth, infrastructure, urban-rural incomes, and human resources; financial service performance significantly mediates DIFI development.DIFI promotes urban-rural equality, financial service allocation efficiency, and socio-economic sustainability by boosting GDP, fiscal expenditure, traffic density, Internet penetration, narrowing income gaps, and improving education.Challenges include rural digital divides, low digital financial literacy, mismatched financial products/services, and incomplete financial service guarantee systems.Recommendations include accelerating digital infrastructure, enhancing digital literacy, developing diverse DIFI products, improving financial service regulations/policies, and strengthening policy coordination to support urban-rural integrated development.