The Role of Financial Literacy and Fintech in Promoting Financial Inclusion

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.