Reform and Improvement in China’s Rural Financial Sector Based on Internet Technology

Abstract

The application of internet has brought opportunities for rural financial institutions to break through the original traditional business. The application of Internet technology in China’s rural financial sector has made business processes online and credit data more available. This paper selects panel data from 30 provinces in China from 2005 to 2017, the fixed effect model is used to conduct regression analysis on the relationship between rural residents' income, financial support, and Internet technology application. It is concluded that financial support has a significant positive effect on the income of rural residents, and the popularization of the Internet has a positive regulatory effect on the increase of rural residents’ income by finance. Combined with the empirical results of the analysis, it is believed that the traditional rural financial institutions to make full use of Internet technology can help solve the problems of high service cost of rural financial institutions and lack of credit data in rural areas. Finally, it is beneficial to the operation of rural financial institutions and better serve the local rural economic development.