The rapid development of digital finance is profoundly changing the structure and management mode of bank credit. Through mobile banking, artificial intelligence, big data, cloud computing, and online lending platforms, banks are able to optimize credit services, increase efficiency, and improve access to credit ^[1]. This evolution began in the late 20th century and accelerated after the 2008 global financial crisis. Through automated approval, precise risk assessment, and real-time monitoring, digital finance has improved credit efficiency, reduced costs, promoted financial inclusion, and enabled groups not covered by traditional financial services to gain support. However, the popularity of digital finance has also brought new challenges, such as consumer protection, cybersecurity, and fraud risks, and there is an urgent need to update the regulatory framework to address these issues. Nonetheless, the technological spillover effects of digital finance have promoted bank credit innovation and improved market competitiveness. This paper analyzes the role of digital finance in credit efficiency, cost, risk management, and financial inclusion, and puts forward policy recommendations to deal with potential risks and ensure the stability and sustainable development of the financial system.