Analysis of the Use of Financial Technology and Financial Literacy Among MSMEs

  • Novia Utami Atma Jaya Catholic University of Indonesia
Keywords: Financial Technology, Financial Literacy, MSME

Abstract

The massive effects of the Covid-19 pandemic and continuous technological innovations are not the only ones that change people's lives; the world is now experiencing the emergence of FinTech. FinTech is a technology-based financial service that allows financial transactions to be made quickly, anywhere, and anytime. FinTech has given MSMEs advantages, from capital financing to easy transaction processes to boost MSMEs' growth. This research aims to see how the adoption of FinTech and financial literacy affect the development of Indonesia's MSMEs. Data were used online questionnaires while samples were selected using a convenience sampling technique with 125 business owners participating in this research. Data were then analyzed using the OLS regression method. Results suggest that FinTech and financial literacy positively and significantly influence the development of MSMEs.

 

Keywords: Financial Technology, Financial Literacy, MSME

 

Abstrak

Efek terjadinya pandemi Covid19 dan inovasi teknologi yang tidak terbatas pada era digital saat ini, semakin dilengkapi dengan hadirnya FinTech. FinTech adalah layanan keuangan dengan berbasis teknologi yang memberikan kemudahan dalam bertransaksi keuangan dimanapun dan kapanpun. FinTech menjadi keunggulan tersendiri bagi UMKM, baik dari segi pembiayaan permodalan maupun kemudahan bertransaksi untuk meningkatkan perkembangan UMKM. Penelitian ini bertujuan untuk mengetahui pemanfaatan Fintech dan literasi keuangan terhadap perkembangan UMKM di Indonesia. Data dalam penelitian ini diperoleh melalui kuesioner secara online dan pengambilan sampel menggunakan teknik convenience sampling. Dengan menggunakan 125 responden pemilik usaha dan metode regresi OLS, penulis menemukan bahwa Fintech dan literasi keuangan memiliki pengaruh positif signifikan terhadap perkembangan UMKM.

 

Kata kunci: Financial Technology, Literasi Keuangan, UMKM

References

Abbasi, K., Alam, A., Du, M. A., & Huynh, T. L. D. (2021). FinTech, SME efficiency and national culture: evidence from OECD countries. Technological Forecasting and Social Change, 163, 120454.

Ahlstrom, D., Arregle, J., Hitt, M. A., Qian, G., Ma, X., & Faems, D. (2020). Managing technological, sociopolitical, and institutional change in the new normal. Journal of Management Studies, 57(3), 411–437.

Asosiasi Fintech Indonesia (Aftech). (2021). Handbook Fintech untuk UMKM 2021.

Aysan, A. F., & Nanaeva, Z. (2022). Fintech as a Financial Disruptor: A Bibliometric Analysis. FinTech, 1(4), 412–433.

Bank Indonesia. (2017). Peraturan Bank Indonesia Nomor 19/PBI/2017 tentang Penyelenggaraan Teknologi Finansial.

Bank Indonesia. (2022). Sistem Pembayaran & Pengelolaan Uang Rupiah. Https://Www.Bi.Go.Id/PJSPQRIS/Default.Aspx.

Bongomin, G. Okello Candiya, Ntayi, J. M., Munene, J. C., & Nkote Nabeta, I. (2016). Social capital: mediator of financial literacy and financial inclusion in rural Uganda. Review of International Business and Strategy, 26(2), 291–312. https://doi.org/10.1108/RIBS-06-2014-0072

Caballero-Morales, S.-O. (2021). Innovation as recovery strategy for SMEs in emerging economies during the COVID-19 pandemic. Research in International Business and Finance, 57, 101396.

Carvalho, G., Resende, L. M. M. de, Pontes, J., Gomes de Carvalho, H., & Mendes Betim, L. (2021). Innovation and management in MSMEs: A literature review of highly cited papers. SAGE Open, 11(4), 21582440211052556.

Financial Stability Board. (2017). Financial stability implications from fintech: Supervisory and regulatory issues that merit authorities’ attention. June, Basel.

Irikefe, P., & Isaac, O. (2021). Effect of Financial Literacy on the Growth of MSMEs. International Journal of Research Publications, 90. https://doi.org/10.47119/IJRP1009011220212541

Karim, S., Naz, F., Naeem, M. A., & Vigne, S. A. (2022). Is FinTech providing effective solutions to Small and Medium Enterprises (SMEs) in ASEAN countries? Economic Analysis and Policy.

Lajuni, N., Wellfren, A. C., & Samsu, S. H. (2022). Financial Literacy/Knowledge Through Financial Education: A Bibliometric Analysis. Labuan Bulletin of International Business and Finance (LBIBF), 66–80.

Lee, D. K. C., & Low, L. (2018). Inclusive fintech: blockchain, cryptocurrency and ICO. World Scientific.

Lema, D., Ruiz-Palomo, D., & Diéguez-Soto, J. (2021). Analysing the roles of CEO’s financial literacy and financial constraints on Spanish SMEs technological innovation. Technology in Society, 64, 101519.

Liu, B., Wang, J., Chan, K. C., & Fung, A. (2021). The impact of entrepreneurs’s financial literacy on innovation within small and medium-sized enterprises. International Small Business Journal, 39(3), 228–246.

Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44.

Lusardi, A., & Mitchell, O. S. (2017). How ordinary consumers make complex economic decisions: Financial literacy and retirement readiness. Quarterly Journal of Finance, 7(03), 1750008.

Naeem, M. A., & Karim, S. (2021). Tail dependence between bitcoin and green financial assets. Economics Letters, 208, 110068.

Ningsih, D. R. (2020). Peran Financial Technology (Fintech) Dalam Membantu Perkembangan Wirausaha UMKM. Prosiding Seminar Nasional Program Pascasarjana Universitas PGRI Palembang.

Peraturan OJK Republik Indonesia Nomor 12/POJK.02/2018 tentang Inovasi Keuangan Digital di Sektor Jasa Keuangan, (2018).

Pollari, I. (2016). The rise of fintech: Opportunities and challenges. AJAF, 3, 15.

Putri, L. P., & Christiana, I. (2021). Peran Financial Technology Dalam Membantu UMKM di Tengah Pandemi Covid-19. Ekonomikawan: Jurnal Ilmu Ekonomi Dan Studi Pembangunan, 21(1), 57–63.

Siddiqui, Z., & Rivera, C. A. (2022). FinTech and FinTech Ecosystem: A Review of Literature. Risk Governance and Control: Financial Markets & Institutions, 12(1), 63.

Singla, A., & Mallik, G. (2021). Determinants of financial literacy: Empirical evidence from micro and small enterprises in India. Asia Pacific Management Review, 26(4), 248–255.

Temelkov, Z., & Samonikov, M. (2018). The need for fintech companies as non-bank financing alternatives for sme in developing economies. International Journal of Information, Business and Management, 10(3), 25–33.

Undang-undang Republik Indonesia Nomor 20 Tahun 2008 tentang Usaha Mikro, Kecil, dan Menengah, (2008).

Venkatesh, V., Ganster, D. C., Schuetz, S. W., & Sykes, T. A. (2021). Risks and rewards of conscientiousness during the COVID-19 pandemic. Journal of Applied Psychology, 106(5), 643.

Winarto, W. W. A. (2020). Peran Fintech dalam Usaha Mikro Kecil dan Menengah (UMKM). Jesya (Jurnal Ekonomi Dan Ekonomi Syariah), 3(1), 61–73.

Yuesti, A., Rustiarini, N. W., & Suryandari, N. N. A. (2020). Financial literacy in the COVID-19 pandemic: pressure conditions in Indonesia. Entrepreneurship and Sustainability Issues, 8(1), 884–898.

Copyright Disclaimer

Copyright for this article is retained by the author(s), with first publication rights granted to the journal.

Published
2023-04-29
How to Cite
Utami, N. (2023). Analysis of the Use of Financial Technology and Financial Literacy Among MSMEs. MBIA, 22(1), 11–21. https://doi.org/10.33557/mbia.v22i1.2217
Section
Articles
Abstract viewed = 481 times
pdf : 561 times