Based on the perspective of total factor productivity, this paper aims to discuss the relationship between inclusive financial development and rural poverty. This

paper applies the Total Factor Productivity(TFP) index which is measured by DEAMalmquist and the provincial panel data of China to conduct an empirical test. The results of the mediation effect test model show as follows: (1) Inclusive financial development plays an important role in poverty reduction by the mediating effect of total factor productivity. (2) From further research, we find that the increase in the penetration of inclusive financial services has the most significant impact on poverty. Besides, inclusive financial development can promote the growth of total factor productivity by the way of increasing technological advancement and efficiency improvement. (3) The robustness test shows that the level of inclusive financial development in different regions of China is quite different, it also shows a large imbalance in the TFP promotion as well as rural poverty reduction. Accordingly, we put up some policy recommendations. Firstly, we should continue promoting inclusive financial development to achieve the goal of comprehensive poverty alleviation in 2020 by taking a full advantage of TFP. Secondly, we should insist on strengthening the financial infrastructure in rural area to reach the financial services equivalence. Finally, we should try to narrow the difference of financial resources and pay attention to the fairness of regional development, so that we can achieve the goal of sustainable development.