Does digital financial inclusion promote elderly consumption? An empirical test based on Chinese survey data

This study investigates the impact of Digital Financial Inclusion (DFI) on elderly consumption expenditure in China, aiming to provide a novel perspective on enhancing the elderly’s participation in the digital economy. Utilizing data from the China Family Panel Studies and the Peking University Digital Financial Inclusion Index, the research employs empirical testing methods, including OLS regression and instrumental variable estimation, to analyze the relationship between DFI and consumption expenditures among the elderly. The findings reveal that DFI enhances the elderly’s access to finance by breaking down barriers, improving financial acumen, personalizing fintech solutions, and stimulating their consumption capacity. It also shows that poorer health increases consumption, while marriage and family size reduce spending. Household income significantly predicts consumption levels, with wealthier elderly consuming more. DFI optimizes consumption patterns, boosting living standards and enjoyment activities and elevating the elderly’s quality of life. This study uses the latest data from China to reveal the impact of DFI on the consumption expenditure and consumption structure of elderly people, offering insights for policymakers to develop targeted strategies that leverage digital finance for improving elderly living standards and stimulating the silver economy. The research holds value for academic and practical domains, presenting evidence-based recommendations for financial institutions and regulators to enhance digital financial services for the elderly demographic.