THE ROLE OF FINANCIAL TECHNOLOGY IN IMPROVING THE EFFICIENCY OF FINANCIAL MANAGEMENT IN INDONESIA’S MSME SECTOR

Abstract

This research examines the role of financial technology (FinTech) in improving the efficiency of financial management in Indonesia’s Micro, Small, and Medium Enterprises (MSMEs). The main problem addressed is the limited adoption of FinTech solutions due to barriers such as low financial literacy and lack of understanding of digital tools. The study uses a qualitative library research approach, analyzing relevant literature, reports, and case studies. The findings highlight that increasing financial literacy and providing targeted government initiatives are essential for enabling MSMEs to adopt FinTech. In conclusion, enhancing financial literacy and support mechanisms is crucial for MSMEs to fully benefit from FinTech, leading to more efficient financial management and sustainable growth in the sector.