Digital credit and bank credit: substitutes or complements?

Based on survey data collected in 12 provinces in China in 2022, we utilize the Quaternary Probit Model with Sample Selection to investigate the correlation between digital credit and bank credit. Our results demonstrate a mutually reinforcing and complementary association between digital credit and bank credit. This complementarity is evident in the distinct advantages of each credit model. We contend that the connection between digital credit and bank credit, as well as their future development, should be considered in terms of complementarity.