Rural financial services serve as a vital link between farmers, businesses, and markets, playing a significant role in the sustainable and high – quality growth of regional economies. In this study, panel data from 31 Chinese provinces covering the period from 2013 to 2024 were gathered. Four econometric models, namely the fixed – effects model, the mediation effect model, the panel threshold model, and the spatial econometric model, were utilized to carry out an empirical examination of how rural financial service innovation affects regional economic development.The results show that rural financial service innovation has a remarkable positive influence on regional economic expansion. During this process, the regional innovation ability and the consumption level of residents act as indirect intermediaries. The internet penetration rate demonstrates a significant threshold effect. Once it exceeds 1.6341, the positive impact of rural financial innovation on economic development is further strengthened.There is a significant spatial correlation between rural financial innovation and regional economic development. Additionally, rural financial innovation has a positive spatial spill – over impact.Finally, this paper proposes corresponding strategies. These include enhancing the overall quality of banking financial services, establishing a risk – sharing mechanism, and promoting the coordinated development of inter – regional economies.
