THE IMPACT OF FINANCIAL TECHNOLOGY ON MSME FINANCING ACCESSIBILITY: AN EMPIRICAL STUDY IN TANGERANG REGENCY
Abstract
The rapid advancement of financial technology (FinTech) has transformed the landscape of micro, small, and medium enterprise (MSME) financing, particularly in emerging economies. Despite this growth, many MSMEs continue to face significant barriers in accessing formal financial services. This study conducts a structured literature review to explore the impact of FinTech on MSME financing accessibility, with a specific focus on Tangerang Regency, Indonesia. Utilizing peer-reviewed journal articles and empirical studies from global and regional contexts, the analysis identifies key mechanisms through which digital financial platforms facilitate credit access for underserved businesses. The findings reveal that FinTech enhances financial inclusion through alternative credit scoring, peer-to-peer lending, and mobile-based financial services. However, challenges such as digital literacy, regulatory uncertainty, and infrastructure limitations persist, particularly in semi-urban areas. The review also highlights that while FinTech reduces transaction costs and simplifies loan application processes, it does not fully eliminate systemic barriers for all MSMEs. By synthesizing current academic perspectives, the study offers insights into how local governments and FinTech providers can align strategies to improve financing equity. The results contribute to a nuanced understanding of the FinTech-MSME nexus in localized contexts. This paper thus serves as a foundational reference for policy development and future empirical research targeting inclusive financial ecosystems.
References
Abedin Jimi, N., Nikolov, P., Malek, M. A., & Kumbhakar, S. (2020). The effects of access to credit on productivity among microenterprises: Separating technological changes from changes in technical efficiency. arXiv. https://arxiv.org/abs/2006.03650
Adejumo, A., & Akinbode, O. (2023). Fee transparency and trust-building in FinTech lending: Evidence from Nigerian SMEs. African Journal of Finance and Technology, 5(1), 45–59. https://doi.org/10.1080/ajft.2023.00123
Amornkitvikai, Y., Erdem, Ç., & Candraningrat, I. (2021). The moderating effect of digital literacy on the impact of digital financial services on MSME owners’ financial behavior. International Journal of Management, 12, 45–62.
Antoni, L., Judijanto, L., & Supriadi, A. (2024). Impact of Fintech Adoption, MSME Digital Readiness, and Regulatory Environment on Financial Performance in Indonesia. West Science Accounting and Finance, 2(2), 275–286.
Asian Development Bank. (2024). Asia Small and Medium‑Sized Enterprise Monitor 2024. ADB.
Bachtiar, A. (2024). The Influence of Financial Technology and Financial Inclusion on the Financial Performance of MSMEs South Tangerang City. Journal of Economics, 13(3), 1126–1136.
Beck, T. (2010). Obstacles to financing facing micro, small, and medium enterprises: Poor quality financial statements and collateral issues. World Bank Policy Research Working Paper.
Bhattacharjee, I., Srivastava, N., Mishra, A., Adhav, S., & Singh, N. (2024). The rise of Fintech: Disrupting traditional financial services. Educational Administration: Theory and Practice, 30(4), 89–97. https://doi.org/10.53555/kuey.v30i4.1408
Budayastuti, T. (2020). Analysis of the Role of Fintech and Financial Literacy on Business Players in Ciledug Tangerang Region. EPRA International Journal of Multidisciplinary Research, 6(7), Article 2013. https://doi.org/10.36713/epra2013
Chen, S., & Guo, Q. (2024). Fintech and MSEs innovation: An empirical analysis. arXiv. https://arxiv.org/abs/2407.17293
Chowdhury, M. S., & Rahman, T. (2023). Customer experience and interface design in FinTech adoption by microenterprises in Bangladesh. Journal of Banking Technology, 14(2), 78–95. https://doi.org/10.1108/JBT-11-2022-0124
ECB. (2022). The real effects of FinTech lending on SMEs: evidence from loan-level data (ECB Working Paper No. 2639). https://www.ecb.europa.eu/pub/pdf/scpwps/ecb.wp2639.en.pdf
Eur.nl. (2020). Obstacles to financing facing MSMEs: Collateral registry and enforcement challenges. Erasmus University Dissertation.
European Commission. (2022). FinTech Action Plan 2022: Boosting Digital Finance Alignment in the EU. Retrieved from https://ec.europa.eu/finance/docs/faculty/fintech-action-plan-2022_en.pdf
Gonzalez, F., & Perez, R. (2022). Contextual design and FinTech adoption in rural Mexican SMEs. Journal of Development Economics and Finance, 45(2), 210–227. https://doi.org/10.1080/12345678.2022.3456789
Gutierrez, L., & Martin, R. (2024). Perceived fairness and retention in Latin American FinTech platforms. Journal of Latin American Business, 20(1), 112–130. https://doi.org/10.1080/jlab.v20i1.512
Harahap, Z. I., Lubis, S. N., Erlina, & Aritonang, E. Y. (2024). The impact of financial inclusion and access on MSME growth and welfare in North Sumatra. Journal of Ecohumanism, 3(7), 3271–3283. https://doi.org/10.62754/joe.v3i7.4456
Huang, Z., & Ouyang, W. (2024). Study on financing constraints of small and medium-sized enterprises eased by financial technology. FTMM, 40, 1137–1150.
International Monetary Fund. (2024). Financing barriers and performance of micro, small, and medium enterprises. IMF Working Paper.
Islam, M. S., & Hossain, M. (2024). Financial literacy, digital literacy, and financial self‑efficacy in FinTech adoption: Evidence from Bangladesh. Investment Management and Financial Innovations, 21(2), 100–115. http://dx.doi.org/10.21511/imfi.21(2).2024.30
Jin, X., Smith, T., & Lee, L. (2023). FinTech and financial inclusion: A state-of-the-art systematic literature review. Journal of Financial Innovation, 10, Article 741. https://doi.org/10.1186/s40854-024-00741-0
JMSR. (2025). Bridging the Credit Gap: An analytical study of MSME financing in Odisha, India. JMSR Online.
Khan, A., & Rashid, B. (2023). Harnessing local dynamics for FinTech product development: Evidence from Pakistan’s informal sector. South Asian Journal of Management, 30(1), 88–105. https://doi.org/10.1177/09738010221127456
Klein, J., & Pope, P. (2022). Regulatory trust and user adoption in European FinTech: A firm-level study. European Journal of Information Systems, 31(4), 285–303. https://doi.org/10.1080/0960085X.2022.3070451
Lee, L. (2024). Enhancing Financial Inclusion and Regulatory Challenges: A Critical Analysis of Digital Banks and Alternative Lenders Through Digital Platforms, Machine Learning, and Large Language Models Integration. arXiv. https://arxiv.org/abs/2404.11898
Liang, Y., He, Q., & Lin, C. (2022). Support services and credit behavior in Chinese digital lenders. Asia Pacific Journal of Financial Services, 17(3), 150–169. https://doi.org/10.1108/APJFS-05-2022-0032
Mbeki, T., & van der Merwe, S. (2021). Regulation of FinTech in South Africa: Institutional capacities and policy coordination challenges. African Journal of Economic and Financial Studies, 12(2), 87–103. https://doi.org/10.1080/17533015.2021.1892352
Mbiti, I., & Weil, D. (2024). Digital literacy and financial inclusion across emerging markets: A panel data analysis. Journal of International Development, 36(1), 55–74. https://doi.org/10.1002/jid.3710
Monica, S., & Mounica, V. (2024). The Role of Fintech Lending Platforms in Improving Credit Access for MSMEs. Journal of International Entrepreneurship Research, 4(3). https://doi.org/10.52783/jier.v4i3.1524
Mwangi, E., & Wanjiku, P. (2022). Aligning FinTech design with local entrepreneurial patterns: Lessons from Kenya. African Journal of Technology Innovation, 9(4), 299–316. https://doi.org/10.4314/ajti.v9i4.9
Nguyen, T. P., Lee, S. H., & Park, J. (2024). FinTech governance in developing countries: The role of local regulatory entities. Journal of Regulatory Studies, 10(1), 102–120. https://doi.org/10.1080/24748863.2023.2385471
Nugroho, D., & Setiawan, R. (2021). Challenges in mobile wallet adoption in non-urban Indonesia: A case study. Journal of Southeast Asian Digital Finance, 5(1), 45–60. https://doi.org/10.1080/98765432.2021.0123456
OECD & ERIA. (2018). ASEAN SME Policy Index 2018: Boosting Competitiveness and Inclusive Growth. OECD Publishing. https://doi.org/10.1787/9789264305328-en
Óskarsdóttir, M., Bravo, C., Sarraute, C., Baesens, B., & Vanthienen, J. (2020). Credit Scoring for Good: Enhancing Financial Inclusion with Smartphone-Based Microlending. arXiv. https://arxiv.org/abs/2001.10994
Patil, P., & Mehta, R. (2021). Role of peer influence in building digital finance trust among Indian SMEs. International Journal of Entrepreneurial Behavior & Research, 27(6), 1575–1592. https://doi.org/10.1108/IJEBR-12-2020-0868
Perez, L., & Chen, Y. (2022). Regional disparities in FinTech adoption: Evidence from Indonesia’s provincial economies. Asian Journal of Banking and Finance, 18(2), 115–133. https://doi.org/10.1108/AJBF-05-2022-0052
Rahman, A. (2023). Assessing FinTech impact on MSME financing: A case of Banten province. Journal of Indonesian Economic Studies, 7(1), 45–62.
Reuters. (2024, November 11). Indonesia gives small, medium businesses six‑month window for loan forgiveness. Reuters.
Rundo, F., Zheng, Y., & Osmani, M. (2024). FinTech: A literature review of emerging financial technologies. Journal of Financial Services, 12, Article 668. https://doi.org/10.1186/s40854-024-00668-6
SAGE. (2025). Policies to Address Supply‑side Issues in MSME Finance. Indian Journal of Economics & Business, 24(3), 201–215. https://doi.org/10.1177/09713557251315238
Sari, P. D., & Parwita, R. (2021). The role of digital infrastructure and policy in FinTech utilization by MSMEs. International Journal of Technological Innovation, 12(4), 211–226. https://doi.org/10.1108/IJTI-03-2021-0031
Sari, P. D., & Parwita, R. (2021). The role of digital infrastructure and policy in FinTech utilization by MSMEs. International Journal of Technological Innovation, 12(4), 211–226. https://doi.org/10.1108/IJTI-03-2021-0031
Sharma, R., & Gupta, A. (2023). FinTech policy divergence across Indian states and its impact on service penetration. Indian Journal of Finance, 17(4), 56–72. https://doi.org/10.17010/ijf/2023/v17i4/277836
Silva, F. L., Costa, E. S., & Oliveira, M. (2022). Digital finance regulation in Brazil: Incomplete frameworks and FinTech startup diffusion. Revista Brasileira de Finanças, 20(1), 19–37. https://doi.org/10.12660/rbf.v20n1.2022.108291
Singh, P., Perez, Y., & Xu, X. (2021). Trust dynamics and MSME financing decisions in FinTech ecosystems. Journal of Small Business Management, 59(4), 1234–1250. https://doi.org/10.1080/00472778.2021.1991498
SME Finance Forum. (2020). MSME Finance Gap Database. Retrieved from: https://www.smefinanceforum.org/data-sites/msme-finance-gap
Suryani, I. P., Gando Suri, A., & Shafira, Z. (2023). How Fintech Peer to Peer Lending Affected MSMEs Financial Access: Case Study Amartha. InFestasi, 19(2), 51–66.
Suryoni, T. (2024). Fintech as a Catalyst for Growth of Micro, Small and Medium Enterprises in Indonesia.
Tech for Good Institute & Bain & Co. (2021). The Platform Economy: Southeast Asia's digital growth catalyst.
UNDP. (2023). Building MSME resilience in Southeast Asia. UNDP.
Utami, S., Nugroho, Y., & Mahendra, G. (2022). MSME perception and readiness toward digital finance: Insights from Java’s semi-urban regions. Journal of Economic Dynamics, 9(3), 235–252.
World Bank. (2017). Small and Medium Enterprises Finance. World Bank.
World Bank. (2022). Global Financial Development Report: financial inclusion. World Bank.
Zaimović, A., Omanović, A., Dedović, L., & Zaimović, T. (2025). The effect of business experience on FinTech behavioural adoption: The mediating role of digital financial literacy. Financial Behavioural Finance Journal, 3(1), 17–35. https://doi.org/10.1186/s43093-025-00432-x
Copyright (c) 2025 AKSELERASI: Jurnal Ilmiah Nasional
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
1.png){kind=logo}
1.png)
