Abstract

Financial technology is widely used in the rural finance as financial technol-ogy develops very quickly and G20 emphasizes the digital inclusive finance. It has promoted many innovations in financial services in the rural finance. All of them meet the requirements of fast and diverse development in rural economy. All that mentioned above leads to development in rural inclusive finance as the following:Many kinds of institutions participate in rural finance; they provided kinds of fi-nancial products and financial services for the rural economy. Based on the appli-cation of financial technology, such problems as financial service can't be provided in certain space, certain fields where financial demands are restrained, thus all can be solved to large degree.

Fintech application promotes digitized financial information. It can develop inclusive finance by the financial service innovations which are based on data mining and data based decision making. The mechanism of Fintech act on the in-clusive finance is the key problem in this research. According to the research of the mechanism, further analysis had been done in the following aspects: （1）The mechanism of financial technology on rural inclusive finance; （2）Taking Sichuan as an example, the influnce of fmanical technology on rural inclusive fi-nance in practice; （3）The path of finance technology in rural inclusive finance. This research do analysis on the theory of supply and demand of economics, the theory of network economics and the theory of rural finance. First, it re-searched the mechanism which Fintech acted on the rural inclusive finance by econometrics analysis; Second, this research summarized the general characteristics of the rural inclusive finance which are based on the analysis of cross－section da-ta, time series and panel data of Sichuan and its sample districts. Then, the econometric model is used to study the effect of financial technology on the com-prehensive effect of rural inclusive finance, the improvement of settlement ability and the increase of loan acquisition. At last, concentrating on DCEP which is a typical application of Fintech, it do further analysis on the implementation process that DCEP empowering the rural inclusive finance. Then, it puts forward the path and the suggestions for applying financial technology to develop rural in-clusive finance.

The main conclusions of this research are：

（1）The mechanism of the Fintech develops rural inclusive finance is the fact that information technology is used to reduce the cost and risks of financial service. The benefits encourage the supplier provide more adaptive financial serv-ices for all users. And then, it promotes the coordinated development of financial supply and demand. In this way, the rural financial market is developed and effi-cient. At last, all users are included in financial services.

（2）Rural inclusive finance is developed by Fintech application which ac-companies with the influence of economy. Compared with the effect of the economy acted on the loan, the effect of Fintech application acted on loan was more obvious. And, the application of Fintech to the settlement account was more obvious in rural inclusive finance.

（3）Rural inclusive finance should adopts the“Internet +”O2O（online/offline）mode by the application of Fintech. Many policies should be made ac-cording to O2O mode as follows: the rural inclusive financial system should be improved by the application of Fintech, non－cash transactions should be devel-oped and credit risk management should be optimized. Rural inclusive finance and rural economy should be synchronous developed in the implementation of the rural revitalization strategy.

The main contributions were draw as follows：

（1）It explores the internal mechanism which Fintech is applied to develop the rural inclusive finance by the basic principles of information economics.

（2）This research computes the level of Fintech application from three di-mensions according to the statistical indicators of the PBC（People's Bank of Chi-na）. And then, the result is used to analyze the effects of Fintech on improving the rural inclusive finance by econometric analysis. Compared with the differences of the marginal effects of Fintech on inclusive finance in three aspects, the con-clusion is that financial technology has the greatest effect on improving settlement ability. And Fintech application promotes the development of rural inclusive fi-nance. With the application of Fintech, the path of the rural inclusive finance should adopt“Internet +”mode which is also named O2O（online/offline） mode.

（3）Considering the application of DCEP and the trend of Fintech, Inclusive Rural Finance should improve the financial system, promote non－cash transactions and optimize credit risk management from online aspects. At the same time, Inclusive Rural Finance should use technology to develop the micro financial outlets, to explore the financial inovation on DECP and to improve their financial service capabilities.

Keywords: Financial Technology; Inclusive Finance; Rural Finance; Mecha-nism; DCEP