An Examination of How Digital Inclusive Finance Affects the Lending Practices of Commercial Banks

DOI

10.2991/978-94-6239-801-6_22How to use a DOI?

Keywords

Digital Inclusive Finance; Commercial Banks; Credit behavior; Digital Finance

Abstract

This article examines how digital inclusive finance affects commercial banks’ loan practices. It will first systematically review the literature available and summarize and analyze it. In this article, the author give an in-depth overview of the primary routes by which digital inclusive finance affects the commercial bank lending behavior, the qualities of the credit being lent out, the arrangement of the credit, and, finally, risk management and decision-making processes. It also provides a sensible account of its mechanism of action along with the conventional credit theory. It has been found that digital inclusive finance through the alleviation of transaction costs and information asymmetry has significantly contributed to the growth of commercial bank lending and has guided credit resources to small and medium-sized enterprises and groups with significant funding shortages, thereby enhancing the credit structure. Digital technology has succeeded in enhancing the capacity of the banks to detect potential risks, as well as the efficiency of the credit decisions. Nevertheless, as a part of enhancing financial efficiency, digital inclusive finance has also introduced new issues in such aspects as data security, protection of privacy, and financial regulation.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Boyu Lyu
PY  - 2026
DA  - 2026/10/23
TI  - An Examination of How Digital Inclusive Finance Affects the Lending Practices of Commercial Banks
BT  - Proceedings of the 2026 2nd International Conference on Financial Innovation and Marketing Management (FIMM 2026)
PB  - Atlantis Press
SP  - 195
EP  - 201
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6239-801-6_22
DO  - 10.2991/978-94-6239-801-6_22
ID  - Lyu2026
ER  -