Digital Transformation of MSME Finance: The Role of Digital Financial Literacy, Digital Lifestyle, and Saving Decisions in Digital Banks (SDB) for Business Resilience

Digital transformation is reshaping how micro, small, and medium enterprises (MSMEs) manage cash, access banking services, and build financial resilience. This study examines how digital financial literacy and digital lifestyle are associated with MSME owners’ savings behavior in digital banks. Using a cross-sectional survey of MSME owners in Indonesia, we evaluate a conceptual model that links digital financial literacy to savings behavior both directly and through digital lifestyle. The analysis applies variance-based structural equation modeling to assess reliability, validity, and path relationships among the constructs. The findings are expected to show that higher digital financial literacy is positively related to savings behavior and that digital lifestyle strengthens this relationship by shaping daily routines, preferences for mobile banking, and trust in digital platforms. The study contributes to the MSME finance literature by integrating behavioral, literacy, and technology-use perspectives into a single framework of digital savings behavior. Practically, the results provide guidance for policy makers, digital banks, and development programs to design targeted literacy modules and user-centric features that encourage regular saving, improve liquidity management, and support business continuity for MSMEs operating in an increasingly digital economy.