Utilization of Financial Technology Through Capital and Financial Literacy: A Study of Troso Jepara Weaving Artificial MSMEs

ABSTRACT : This study analyzes the impact of relational capital and financial literacy on fintech adoption. The background of this study is the imbalance between the rapid pace of fintech innovation and the slow rate of equitable adoption, especially among Micro, Small, and Medium Enterprises (MSMEs). Data from 195 Troso Jepara Weaving MSME respondents were collected through questionnaires and processed using multiple linear regression methods to test the relationship between variables. The results of the analysis show that financial literacy significantly influences fintech adoption. This finding confirms that an adequate understanding of financial concepts is a crucial prerequisite for fostering individual confidence and willingness to adopt digital financial services. Furthermore, relational capital also positively and significantly influences fintech adoption. This underscores the important role of social networks and trust in facilitating technology adoption, where information originating from trusted sources can minimize uncertainty and build confidence among potential users.