The Impact of Digital Finance on China’s Household Saving Rate: Evidence from Yu’e Bao

Abstract

In recent years, with the continuous development and extensive application of digital finance, digital finance has had a profound influence on the financial market. In this situation, digital finance has become an important factor affecting the household saving rate. This study reviews the literature on the impact of digital finance on household behavior, the impact of household behavior on the saving rate, and the impact of digital finance on the household saving rate. This paper takes Yu'e Bao as an example to discuss the impact of digital finance on household savings rate in the context of the digital era. Through research, it is found that digital finance, with its low threshold and high liquidity, has prompted residents to use platforms such as Yu'e Bao more changing the financial management concept of Chinese people. Although it has reduced the household savings rate of residents, it has also injected vitality into the economy. The research findings contribute to a better understanding of the behavioral shifts driven by digital finance and provide insights for high-quality economic development during the process of digital construction.