Core Viewpoint - The development of inclusive finance is essential for providing financial services to the real economy and has become a key goal in China's financial reform [1][2]. Group 1: Inclusive Finance Development - As of February 2025, the balance of loans to inclusive small and micro enterprises reached 33.9 trillion yuan, a year-on-year increase of 12.6%, which is 5.7 percentage points higher than the growth rate of all loans [2]. - The average interest rate for newly issued inclusive small and micro enterprise loans is 4.03%, a cumulative decrease of 3.9 percentage points since 2018 [2]. - By the end of 2024, the number of inclusive small micro credit accounts exceeded 60 million, covering about one-third of business entities [2]. Group 2: Digital Transformation and Financial Technology - Digital transformation, centered on financial technology, provides new opportunities and challenges for the high-quality development of traditional inclusive finance [3]. - Financial technology investments reached 125.46 billion yuan in 2024, a 2.15% increase from 2023 [3]. - Digital transformation can alleviate information asymmetry between banks and borrowers, reduce transaction costs, and enhance banks' product innovation capabilities [5][8]. Group 3: Challenges for Small and Medium Banks - Small and medium banks face challenges in digital transformation due to limitations in operational scale, management systems, and technology talent [4][6]. - The lack of effective information and the limited ability to identify credit risks lead to imbalances in credit allocation and unmet effective demand [2][4]. - Managerial cognitive biases, such as overconfidence, can negatively impact the sustainable development of inclusive finance by suppressing product innovation and increasing service costs [9][10]. Group 4: Recommendations for Improvement - Establish a digital transformation strategy that integrates technology into the core of business operations for small and medium banks [11][12]. - Enhance the digital capabilities of bank managers through systematic training in core technologies like big data and artificial intelligence [13]. - Optimize marketing incentive mechanisms and performance evaluation systems to align with the goals of digital transformation and inclusive finance development [14]. - Create supportive policies to facilitate the digital transformation of small and medium banks, especially in areas with lower internet penetration [15].