Digital inclusive finance promoting urban-rural integration: theoretical logic, practical challenges, and pathways

The integration of urban and rural areas is an essential requirement for the promotion of Chinese-style modernization and the realization of common prosperity for all people. It is also a core element of rural revitalization. Digital inclusive finance leverages digital technology to break the spatial and temporal constraints between urban and rural areas, promoting the rational allocation of resources across these regions. This serves as an important driving force for advancing urban-rural integration. Based on a systematic review of the connotations and characteristics of digital inclusive finance and urban-rural integration, this study delves into the theoretical logic of how digital inclusive finance facilitates urban-rural integration from three perspectives: equity, efficiency, and sustainability. It identifies the current practical challenges faced and proposes pathways for achieving urban-rural integration through digital inclusive finance in the digital economy era. The research demonstrates that digital inclusive finance promotes fairness in urban and rural economic and social development, enhances resource allocation efficiency, and advances sustainable development by expanding financing channels, improving public services, reducing transaction costs, enhancing factor mobility, and aligning with the needs of green industries. However, challenges remain, including a significant regional digital divide, low digital financial literacy among rural residents, a mismatch between the supply of financial products and services and the demands of urban-rural integration, and inadequate security systems, all of which restrict the progress of urban-rural integration. In the future, there is an urgent need to accelerate the construction of digital infrastructure, improve the digital financial literacy of rural residents, innovate and diversify digital inclusive financial products, improve relevant laws and regulations, strengthen policy coordination, and provide strong support for urban-rural integration.