The Role of Financial Technology for Development of Micro, Small and Medium Enterprises (Msmes) in Indonesia

Abstract

The rapid development has made financial technology/financial technology's innovations more diverse according to the needs and financial problems that arise. With the existence of financial technology (financial technology) it can also make the financial service process faster, more effective and easier. Because of the development in the field of financial technology with the various solutions offered, this study aims to examine the role of financial technology for the development of MSMEs (Micro and Medium Enterprises), this research also includes aspects of the role of financial inclusion for the development of MSMEs to be able to see how much public knowledge is about financial service products and risk knowledge. The case study in this research is MSMEs in the Tangerang area using quantitative methods. The results of research using multiple linear regression analysis found that the role of financial financial technology for the development of MSMEs has a significant positive effect. Meanwhile, financial inclusion for the development of MSMEs has a positive and insignificant effect on the dependent variable. This study concludes that the use of financial technology for MSME businesses, as well as the high reference to financial products, are important factors in encouraging the development of MSMEs.