The Role of Financial Literacy and Fintech in Promoting Financial Inclusion

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Abstract

This study explores the impact of financial technology (Fintech) on the sustainable performance of Micro and Small Enterprises (MSEs) within a university ecosystem, focusing on the mediating roles of financial literacy and financial inclusion. A purposive sampling technique yielded 250 MSE owners in Tangerang. Data were analyzed using Structural Equation Modeling-Partial Least Squares (SEM-PLS). Findings indicate that Fintech enhances MSE performance, with financial literacy significantly amplifying this effect. Non-linear relationships reveal initial declines before positive growth, underscoring the importance of early Fintech adoption phases, including learning and risk management.