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Criminal shadows on digital finance: Organized crime and digital finance inclusion in China

Author

Listed:
  • Fang, Guangliang
  • Wang, Zizhen
  • Zheng, Jianwen
  • Pan, Xia

Abstract

This study examines whether organized crime hinders digital financial inclusion in China. Using the digital financial inclusion index from 31 provinces and prosecution data from China’s anticrime campaign, organized crime significantly impedes digital finance development. Provinces with higher organized crime rates exhibit lower digital financial inclusion. Social trust moderates this relationship, with strong social capital attenuating the negative impact. The effect is most pronounced in economically developed regions where digital economies are vulnerable to criminal disruption.

Suggested Citation

  • Fang, Guangliang & Wang, Zizhen & Zheng, Jianwen & Pan, Xia, 2026. "Criminal shadows on digital finance: Organized crime and digital finance inclusion in China," Finance Research Letters, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:finlet:v:87:y:2026:i:c:s154461232502241x
    DOI: 10.1016/j.frl.2025.108988
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    Keywords

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    JEL classification:

    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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