The Role of FinTech in Enhancing Financial Inclusion and Access to Funding for MSMEs in Indonesia's Digital Economy Era

Abstract

With the rapid development of digital technology, the financial sector is facing major changes that allow MSMEs to access financial services that were previously difficult to reach through traditional financial institutions. MSMEs, as a sector that plays an important role in the Indonesian economy, often face obstacles in obtaining formal financing. Therefore, FinTech has the potential to be a solution in overcoming the financial access gap and accelerating financial inclusion for MSMEs, in line with the increasing penetration of the internet and technology in Indonesia. This study aims to examine the role of FinTech in increasing financial inclusion and access to funding for MSMEs in Indonesia. This study uses a qualitative approach with a type of literature study research to analyze the role of FinTech in increasing financial inclusion and access to funding for MSMEs in the era of Indonesia's digital economy. The results show that the adoption of FinTech can facilitate MSMEs in accessing digital banking services, electronic payments, and technology-based lending platforms, which provide operational convenience and efficiency. However, challenges such as financial literacy, data security, and uneven internet access still need to be overcome so that the full potential of FinTech can be realized to support the economic growth of MSMEs.