Information technology broadens the market boundary from the perspective of supply and demand
If there are no various online shopping platforms based on information technology, our shopping range may be limited to nearby work and living areas. Therefore, we can only selectively consume products provided by retailers in these regions, and products from other regions will not enter our consumer choice set. Internet sales platforms have disrupted people's choices. Our consumer package has completely broken through the geographical restrictions, domestic and even international products can be purchased through the Internet platform. Online shopping platforms have changed the way we consume. This is particularly important for people in remote areas and low-income groups. Where courier services can reach, the Internet provides them with more diverse, cheaper, and better quality products, rather than limited to local scarce and sometimes inferior goods.
From the perspective of supply, Internet sales platforms have broadened market boundaries for enterprises. For online sales companies, consumers are all their sales targets, and are no longer restricted by physical scope. The trade gravity model shows that when the actual distance of offline transactions increases by 1%, the transaction volume will decrease by more than 1%. In cross-regional offline transactions, every time the transaction distance doubles, the transaction volume will decrease by 120%. Online trading has changed the relationship between physical distance and transaction volume, and the impact of distance on transaction volume has become very small, providing manufacturers with a broad market space, which is more conducive to the growth of enterprises. Similarly, this may also change the income levels of some remote areas and low-income groups.
Information technology helps to solve the financing difficulties of small and micro enterprises
Since inclusive finance has the potential to promote economic growth and improve welfare, inclusive finance is a priority factor for decision makers around the world. Inclusive finance means that enterprises and individuals can obtain a wide range of financial services at a reasonable cost, and these financial services are provided by well-functioning and sustainable institutions. Inclusive Finance is committed to expanding the channels for individuals and small, medium and micro enterprises to obtain financial services.
For many individuals and most small and micro enterprises, financing difficulties is a difficult problem to solve. There are many reasons for this problem, such as information asymmetry, lack of collateral for individuals and small and micro enterprises, and the high cost of financial institutions to serve these enterprises. Big data can outline the overall picture of small, medium and micro enterprises and help assess their business risks.
For individuals, the development of information technology can also help solve many financial service problems. As people increasingly adopt mobile payments and use many other mobile scenarios that expose personal information, it can be said that we have almost become transparent people. Using big data technology, we can easily outline our basic personal information and solve the problem of information asymmetry in personal access to financial services. In addition, the Internet platform provides us with a variety of financial services, such as wealth management, insurance, credit cards, etc. If many financial services are properly applied, they can indeed bring many benefits to people.
