FINANCIAL TECHNOLOGY AS AN EFFORT TO EXPAND FINANCIAL INCLUSION FOR MSMES IN INDONESIA A LITERATURE REVIEW

Abstrak

This study focuses on analyzing the role of financial technology in enhancing financial
inclusion access for Micro, Small, and Medium Enterprises in Indonesia. Using a
qualitative approach through a literature review method, this research examines various
literatures and previous studies that explore the relationship between fintech, financial
literacy, and the level of financial inclusion. The findings indicate that fintech plays a
crucial role in broadening access to financing, facilitating digital transactions, and
supporting MSMEs in financial management. Collaboration between fintech and financial
institutions, including Islamic banking, can further extend the reach of formal financial
services to MSME actors who were previously underserved. However, the
implementation of fintech still faces several challenges, such as low levels of digital
literacy, limited supporting infrastructure, and regulations that have not fully adapted to
technological advancements. Therefore, synergy among the government, financial
authorities, fintech service providers, and MSME actors is essential to create a financial
ecosystem that is inclusive, sustainable, and adaptive to technological developments)