The Influence of Financial Literacy, Financial Technology, and Financial Inclusion on The Financial Performance of SMEs in the Services and Trade Sectors in Pontianak City

The Indonesian government will continue to encourage financial literacy and financial inclusion to achieve the Financial Inclusion Index goal of 90 percent by 2024. Therefore, the role of financial services needs to be optimized to expand access for people who still lack financial literacy. In the future, women will be the economic drivers who dominate spending in the world. This is because women have many important roles in their lives, starting with their role in the family as mothers to their role in society as woman entrepreneurs. The aim of the research is to determine: (1) The influence of financial literacy on the use of financial technology (GoPay). (2) The influence of financial inclusion on the use of financial technology (GoPay). (3) The influence of financial literacy and financial inclusion on the use of financial technology (GoPay). This research uses quantitative methods with a sample of 100 female private employees in the DKI Jakarta area who have used or have used GoPay as a payment system. Calculation, processing and presentation of data using statistical tests assisted by using the Jeffrey's Amazing Statistics Program (JASP). Based on the research results, it is known that financial literacy and financial inclusion have a positive influence on the use of GoPay financial technology among female private employees in the city of Jakarta. This is also supported by the results of the determinant coefficient test (r2) where it is known that financial technology can be explained by financial literacy and financial inclusion by 61.4% while the other 38.6% is explained by variables outside the research. Even though the percentage level of financial technology variance is quite high, researchers hope that in future research they can use other variables not mentioned in the research, and use more samples to get results that are more representative of the population size.

The purpose of this study was to determine the impact of financial behavior, financial inclusion, and financial technology on MSME performance with financial literacy as a mediating variable. The research population included all micro, small, and medium enterprises (MSMEs) located in Ciamis Regency, and the sample was drawn using a random sampling technique. A total of 106 respondents participated; this number was determined by applying Slovin's formula. Information was collected using a questionnaire, which was then processed and analyzed using Partial Least Squares (PLS). The results show that financial behavior has a positive impact on MSME performance, financial inclusion has no significant impact on MSME performance, financial technology has no impact on MSME performance, and financial literacy has a positive impact on MSME performance, financial literacy acts as an intermediary between financial behavior and MSME performance, financial literacy mediates the relationship between financial inclusion and MSME performance, and financial literacy does not mediate the relationship between financial technology and MSME performance. Recommendations for government agencies and financial institutions include providing well-structured financial literacy programs and assisting MSMEs in implementing financial technology. This approach is intended to increase MSMEs' access to financial services as well as their capacity for sustainable growth by equipping them with the knowledge and skills to effectively utilize these resources in their day-to-day business activities.

Micro and Small Enterprises (MSMEs) contribute a major share to the regional economy. In recent times, business competitiveness grows precariously making sustainability a problem. This study aims to provide empirical evidence about the relationship between financial technology, literacy, inclusion, and MSMEs’ sustainability in Sleman. This study uses a quantitative approach with Partial Least Square (PLS). Data were collected from questionnaires of 100 MSMEs in Sleman with a convenience sampling technique. The results reveal that financial technology and literacy impose a positive effect on financial inclusion, while financial technology and literacy exert a positive effect on MSMEs’ sustainability. In addition to that, financial inclusion is also found to have a positive effect on mediating financial technology and literacy influence on MSMEs’ sustainability. This study provides input for MSMEs management to increase the use of financial technology to support MSMEs’ sustainability and for the local government to promote financial literacy for MSMEs and enhance financial inclusion which will ultimately advance MSMEs’ sustainability.

Purpose: The aims of the investigation is the determine the influence of financial literacy, financial technology, and digital business on the financial performance of SMEs and the moderating role of financial inclusion in this context. Methodology/approach: This research uses quantitative data with a purposive sampling approach. 104 MSMEs in the city of Yogyakarta made up the study’s population. Findings: According to the study’s findings, MSMEs financial performance is positively impacted by financial literacy and digital business, but not financial technology. In addition, financial inclusion is able to moderate financial literacy on financial performance, but cannot moderate financial technology and digital business on the financial performance of MSMEs. Practical and Theoretical contribution/Originality: This research can explain the Resources Based View (RBV) theory and the Technology Acceptance Model (TAM) theory regarding the level of financial performance. The implication is that increasing understanding of financial literacy and utilizing digital business platforms improves financial performance, but the adoption of financial technology is not yet optimal. Research Limitation: Limitations in the low R Square value of 21% when testing variables simultaneously so that it does not represent financial performance.

MSMEs are the main pillar of the Indonesian economy, playing a major role in employment, increasing GDP, and exporting local products. The government targets 90% financial inclusion by 2024, but low financial literacy is a challenge. MSMEs' performance could be improved by using fintech, however optimizing economic impact and guaranteeing business sustainability require a strong grasp of finance. With an emphasis on the connection between these factors and MSME performance, this study attempts to investigate how financial inclusion, financial literacy, and financial technology use affect MSMEs' financial success. The research involved 160 MSME owners from the Solo Besar Batik Craft Center, all of whom have adopted fintech-based payment systems. A straightforward random sampling procedure was used to choose the sample. Using a Likert scale, a questionnaire was used to gather primary data. Data analysis was conducted using SmartPLS 3 software, applying the probability sampling method (simple random sampling). The findings revealed that financial literacy, financial inclusion, and the use of financial technology significantly and positively influence the financial performance of MSMEs. Financial literacy aids in better management and increased profitability, financial inclusion broadens access to financial services, and financial technology enhances access to capital and improves transaction management. This research confirms the importance of these three factors for the growth and sustainability of MSMEs.

This study aims to explore the connection between financial literacy, financial inclusion, and financial technology and financial performance. It also looks at whether financial literacy mediates the link between financial technology, financial inclusion, and financial performance, as well as if financial literacy impacts financial technology and financial inclusion. The research population consists of MSMEs in Semarang City, and 95 MSMEs in the Food and Beverage (FnB) sector in West Semarang were selected as a sample because of the researcher's proximity. A quantitative descriptive research approach was used in this investigation. The findings demonstrate that financial technology and financial inclusion have a major and positive influence on the financial performance of MSMEs in Semarang City. However, financial literacy is not much impacted by financial technology or financial inclusion. Instead, financial literacy impacts financial performance, and financial technology and financial inclusion have a positive and significant impact on financial performance through financial literacy.

The Indonesian Financial Services Authority (Otoritas Jasa Keuangan) states that the financial literacy increase will be followed by developing the financial inclusion index. Nevertheless, the level of public financial literacy is still far behind the financial inclusion index. Perpres No. 82 of 2016 concerning the National Inclusive Finance Strategy sets a target of 75% of the adult population to access financial services in 2019. As information technology develops and internet penetration rates rapidly emerge, digital financial services emerge that make it easier for people to obtain financial services called financial technology. The increasing use of financial technology is one of the drivers for increasing national financial inclusion. This study aims to investigate studies of financial inclusion, financial literacy, both from knowledge, behavior, and financial attitudes, and financial technology. The research is a literature study research examining thirty journals and reports related to Financial Inclusion, Financial Literacy, and Financial Technology. Formed on the respondents' characteristics, gender, age, education, and occupation had an impact on increasing financial inclusion, financial literacy, and financial technology in Indonesia. Many people use financial products and services without having a good knowledge of the functions, how to choose the right according to needs, and do not know the risks of the products used. Recommendation from this is a strategy strategic of the respondents' characteristics is needed in increasing financial inclusion.

Purpose: This study aims to determine the magnitude of the influence of financial management, financial literacy and financial inclusion on the financial performance of MSMEs in Jepara Regency. Methodology: This research uses a quantitative approach with a sampling technique, namely purposive sampling. The sample in the study was 113 MSME respondents in Jepara Regency. Technical data analysis using the IBM SPSS Statistics 25 program. Results: The analysis revealed that financial management had no significant effect on financial performance (β = 0.104, p = 0.378). In contrast, financial literacy (β = 0.354, p = 0.002) and financial inclusion (β = 0.277, p = 0.012) had a significant positive effect. The overall model explained 20.7% of the variance in financial performance (Adjusted R² = 0.207, F = 10.763, p 0.05). Findings: Ease of access to financial services and good financial understanding can improve the financial performance of MSMEs. Novelty and Originality: While prior studies have explored the effects of financial literacy and inclusion in various regions, limited research focuses specifically on Central Java, particularly Jepara Regency. This study addresses that gap by providing empirical evidence that highlights the importance of financial literacy and inclusion in improving MSME competitiveness. Conclusion: Improving financial literacy and inclusive access to financial services is a key strategy for enhancing MSME financial performance. This study also recommends that local governments and financial institutions design practical financial education programs and simplify service access to better support MSMEs’ financial growth and resilience. Type of Paper: Research paper.

After 65 years of independence, large sections of Indian population still remain unbanked. This has led generation of financial instability and lower income group who do not have access to financial products and services. However, in the recent years the government and Reserve Bank of India has been introduced the concept and idea of financial inclusion.Financial inclusion is an important method of economic development of a nation. Financial sector inclusion is very important component of inclusive growth strategy. Financial inclusion can be described as the delivery of banking and other financial services at affordable costs to the vast section of the disadvantaged and low income groups. It plays very vital role in economic progress. Financial sector inclusion helps in eliminating poverty, reducing inequality, eliminating unequal access to opportunities, reducing inequalities of choice. This study tries to understand policy initiatives by the govt for financial inclusion, reasons for financial exclusion, steps taken by the government for financial inclusion and implications of financial inclusion. This study is mainly based on secondary data and collected information from books, journals and website.

This study aims to determine how financial inclusion in Garut Regency is influenced by fintech usage and financial literacy. The research focuses on the relationship between financial literacy, fintech usage, and the level of financial inclusion among the people of Garut Regency, particularly in the context of regional financial digitalization. The research approach used is quantitative, employing descriptive and verification methods. Data analysis is conducted using multiple regression to examine the influence of fintech and financial literacy on financial inclusion. The population of this study consists of residents of Garut Regency who use fintech services. The research sample is selected using a specific technique appropriate to the study’s objectives. Data is collected through surveys using questionnaires and literature studies to support analysis and discussion. The findings indicate that financial literacy has a positive and significant impact on financial inclusion. Fintech usage also contributes positively and significantly to increasing financial inclusion in society. This study presents a new perspective by discussing the use of fintech in society through dimensions of perception, attitude, intention, and satisfaction related to financial literacy on financial inclusion. Furthermore, this study is conducted in Garut Regency, which has not been extensively researched before, and is related to the implementation of the Regional Financial Access Acceleration Team and Electronification of Regional Government Transactions in promoting financial literacy and inclusion in the region.

This study aims to explain the effect of fintech on financial literacy and inclusion in MSMEs in Kupang City. This research is a quantitative research with primary data, namely by distributing questionnaires to MSMEs in Kupang City. The data analysis technique used was path analysis using SPSS software version 29. Respondents in this study were 100 SMEs in Kupang City. The results of this study indicate that fintech has a significant positive effect on financial literacy in MSMEs in Kupang City, fintech has a significant positive effect on financial inclusion in MSMEs in Kupang City, financial literacy has a significant positive effect on financial inclusion in MSMEs in Kupang City, fintech has a significant positive effect on financial literacy through financial inclusion in MSMEs in Kupang City. With these results, it is hoped that MSMEs need to increase the use of financial technology because it has been proven to increase financial literacy and inclusion

This research aims to empirically prove the influence of financial literacy and financial technology on financial inclusion, the influence of financial literacy and financial technology on financial performance, the influence of financial inclusion on financial performance, and the influence of financial literacy and financial technology on financial performance through financial inclusion of SMEs in Sei Semayang Village, Deli Serdang Regency. The sample for this research was UKM Sei Semayang Village, Deli Serdang Regency which was selected using the purposive sampling method. Data analysis uses Structural Equation Modeling-Partial Least Square. The research results show that financial literacy and financial technology have a positive and significant effect on financial inclusion, financial literacy, and financial technology have a positive and significant effect on financial performance, financial inclusion has a positive and significant effect on financial performance, and financial inclusion mediates the effect of financial literacy and financial technology on financial performance.

MSMEs play a vital role in Banten Province’s economy, but often face challenges such as low financial literacy, limited access to financial services, and a digital divide. This study aims to analyze the effects of financial literacy and financial technology (FinTech) adoption on financial inclusion, as well as their positively associated with MSMEs’ financial performance and business sustainability. In addition, the study examines the mediating role of financial inclusion in these relationships. A quantitative approach using PLS-SEM was employed to analyze survey data from 62 curated MSMEs in Banten Province with five respondents per firm (N = 310). The results indicate that financial literacy and FinTech adoption significantly enhance financial inclusion. Financial literacy alone does not directly affect financial performance or business sustainability, highlighting the need for access to financial services to make knowledge effective. Financial inclusion was found to positively influence both performance and business sustainability, emphasizing its critical role. These findings suggest that policymakers and financial institutions should combine efforts to improve financial literacy with expanded access to digital financial services and design more inclusive financial products for MSMEs in Banten Province, rather than generalizing to all Indonesian MSMEs.

Background: Financial management in the digital era has shifted significantly due to the rapid adoption of digital financial services and technologies. Specific background: Despite increased financial inclusion in Indonesia, financial literacy remains low, leading to inconsistent financial behavior across demographic groups. Knowledge gap: Previous studies have rarely examined the comprehensive moderating role of financial technology in the relationship among financial literacy, lifestyle, financial inclusion, and financial behavior within the general public. Aims: This study aims to analyze the relationship between financial literacy, lifestyle, and financial inclusion with financial behavior, and to examine how financial technology moderates these relationships. Results: Using the Partial Least Squares–Structural Equation Modeling (PLS-SEM) method with 96 respondents, results indicate that financial literacy, financial technology, and lifestyle significantly shape financial behavior, while financial inclusion does not. Financial technology strengthens the relationship between financial literacy and financial inclusion with financial behavior but not with lifestyle. Novelty: The study identifies the dual moderating role of financial technology in linking literacy and inclusion to responsible financial practices. Implications: These findings emphasize the need for integrated financial education and digital literacy programs to promote smarter and more sustainable financial management in the digital economy. Highlights Financial literacy and technology jointly shape responsible financial behavior Financial inclusion alone does not ensure improved financial management Financial technology strengthens the link between knowledge and financial discipline Keywords Financial Literacy, Financial Technology, Lifestyle, Financial Inclusion, Financial Behavior

This study explores the critical relationship between financial inclusion and financial literacy, highlighting their roles in fostering economic development and reducing inequality. Financial inclusion refers to the availability and accessibility of financial services to all individuals, regardless of their socio-economic status. Financial literacy, on the other hand, is the knowledge and understanding of financial concepts that enable individuals to make informed and effective financial decisions. This paper investigates how financial literacy impacts financial inclusion, examining the barriers to inclusion that low financial literacy may create. By analyzing data from various demographic groups, the study reveals a positive correlation between financial literacy and financial inclusion, suggesting that improving financial literacy can significantly enhance financial inclusion. The findings underscore the importance of targeted educational initiatives and policy interventions aimed at increasing financial literacy as a means to achieve broader financial inclusion. Financial inclusion and financial literacy are two interconnected pillars essential for achieving sustainable economic growth and reducing poverty. In an increasingly complex financial world, access to financial services and the ability to use them effectively are crucial for individual and societal well-being. Financial inclusion ensures that individuals have access to basic financial services such as savings, credit, insurance, and payment systems, which are fundamental to participating fully in the economy. However, access alone is not sufficient. Without a basic understanding of financial concepts—such as interest rates, inflation, and investment risks—individuals may struggle to make informed financial decisions. This gap in financial literacy can lead to suboptimal use of financial services, perpetuating cycles of poverty and economic exclusion. This paper seeks to explore the dynamic relationship between financial literacy and financial inclusion, focusing on how enhancing financial literacy can lead to greater financial inclusion. The study also considers the role of policymakers, financial institutions, and educational bodies in fostering environments where both financial literacy and inclusion can thrive. Understanding the relationship between financial inclusion and financial literacy is critical for advancing economic development and reducing poverty. Financial inclusion plays a crucial role in enabling individuals to participate fully in the economy, while financial literacy equips them with the necessary skills to make informed decisions about their financial resources. Despite global efforts to enhance financial inclusion, millions of people, particularly in developing countries, remain excluded from the formal financial system. This exclusion is often exacerbated by low levels of financial literacy, which prevents individuals from effectively using available financial services. The significance of this research lies in its potential to inform policymakers, educators, and financial institutions about the importance of integrating financial literacy programs with financial inclusion strategies. By demonstrating the impact of financial literacy on financial inclusion, this study underscores the need for targeted interventions that address both access to financial services and the ability to use them wisely. Benefit 1: Accessibility (0-10), Benefit 2: Impact on Savings (0-10), Non-Benefit 1: Implementation Cost (USD thousands), Non-Benefit 2: Complexity (0-10). Mobile Banking, Financial Literacy Workshops, Microfinance Programs, School-based Financial Education, Government Subsidized Savings Accounts. The results indicate that Financial Literacy Workshops achieved the highest rank, while Microfinance Programs had the lowest rank being attained. The value of the dataset for Corporate financial inclusion and financial literacy according to the WASPAS Method, Integrated Pest Management achieves the highest ranking “.