THE INFLUENCE OF THE APPLICATION OF FINANCIAL TECHNOLOGY (FINTECH) ON FINANCIAL MANAGEMENT EFFICIENCY IN MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES)
Keywords:
Fintech, MSMEs, financial efficiency, financial management, financial inclusionAbstract
Financial technology (fintech) has become an important innovation in the financial sector, especially for Micro, Small and Medium Enterprises (MSMEs). This research aims to analyze the effect of implementing fintech on the efficiency of MSME financial management through a literature review approach. Various previous studies show that fintech provides significant benefits in increasing financial transparency, facilitating access to capital, and speeding up the business transaction process. Services such as digital financial recording, application-based payment systems, and online loans have helped MSMEs optimize their financial management. Even though fintech provides various benefits, its adoption still faces a number of challenges, such as low digital and financial literacy, concerns about data security, and limited technological infrastructure in some regions. Therefore, support is needed from various parties, including the government, fintech service providers and the business community, to improve digital education and strengthen regulations that protect MSMEs in the fintech ecosystem. With the right strategic steps, fintech can be an effective solution in increasing the efficiency of MSME financial management and encouraging digital economic growth.
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