ABSTRACT
The low cost of digital finance and mobile Internet, and financial services based on big data, have brought unprecedented opportunities to address the problem of inclusive finance development. First, the customer base and scope of financial services have been broadening. Second, the gap of financial development among different geographic regions has narrowed, with the financial development of backward areas being accelerated. Third, the traditional credit risk management model has improved. Concurrently, regulators need to balance encouraging innovation and enhancing regulation to guide the proper development of inclusive finance. They must prioritize bridging the “digital divide” brought by technology applications, prohibit illegal financial activities that pretend to be inclusive finance, and enhance data security and privacy protection. They must also establish investor suitability rules and consumer protection regulations and reinforce the basic regulatory system, strengthening areas of weakness.
