While many banked people already use mobile banking in China, the country also has the potential to emerge as an important success story for branchless banking and financial inclusion and potentially a new paradigm.
This paper aims to be a first step in providing a picture of the extent and nature of financial inclusion in the People's Republic of China and the size and characteristics of the unbanked and underbanked market.
Last year, peer-to-peer (P2P) lending in China surpassed the US$100 billion threshold and confirmed China as the world’s largest P2P lending market, leaving North America a distant second. This tremendous growth was driven by a mix of circumstances.
The rate of mobile money (MM) adoption among poor people remains low. However, the mechanisms driving adoption are similar to those of other segments. This analysis revealed that social networks and social interactions influence mobile money uptake.