Financial literacy, FinTech, and inclusion for MSME growth in Banten province

MSMEs play a vital role in Banten Province’s economy, but often face challenges such as low financial literacy, limited access to financial services, and a digital divide. This study aims to analyze the effects of financial literacy and financial technology (FinTech) adoption on financial inclusion, as well as their positively associated with MSMEs’ financial performance and business sustainability. In addition, the study examines the mediating role of financial inclusion in these relationships. A quantitative approach using PLS-SEM was employed to analyze survey data from 62 curated MSMEs in Banten Province with five respondents per firm (N = 310). The results indicate that financial literacy and FinTech adoption significantly enhance financial inclusion. Financial literacy alone does not directly affect financial performance or business sustainability, highlighting the need for access to financial services to make knowledge effective. Financial inclusion was found to positively influence both performance and business sustainability, emphasizing its critical role. These findings suggest that policymakers and financial institutions should combine efforts to improve financial literacy with expanded access to digital financial services and design more inclusive financial products for MSMEs in Banten Province, rather than generalizing to all Indonesian MSMEs.