The influence of three digital divide levels on financial advisor demand and engagement among Chinese residents: An investigation based on China

In the era of advancing digital transformation, the impact of the digital divide on residents’ financial behavior has garnered considerable attention, yet there exists a gap in understanding its implications for financial advisors. Employing the analytical framework of “access gap-usage gap-utility gap” and utilizing a Probit model with sample selectivity, this paper systematically explores the impacts, heterogeneity, and mechanisms of the three levels of the digital divide on the demand for and engagement with financial advisors among residents in six eastern provinces of China in 2022. Key findings are as follows: (1) The impact of the access gap isn't significantly, whereas the effects of the usage gap and utility gap are significantly negative. This implies that residents’ internet usage itself does not affect the likelihood of seeking and engaging financial advisors, but lower frequency and perceived importance of internet usage decrease the likelihood of seeking and engaging financial advisors. (2) Heterogeneity analysis reveals that the inhibitory effects of the usage gap and utility gap are more pronounced in rural households, those with debt, and householders lacking financial education. (3) Mechanism studies uncover that both the usage gap and utility gap diminish residents’ demand for and engagement with financial advisors by weakening social networks and reducing information attention. This study contributes to a deeper understanding of the profound impact of digital transformation on financial markets, offering policy suggestions and practical guidance to enhance financial services.