THE EFFECT OF FINANCIAL TECHNOLOGY ON FINANCIAL LITERACY OF MICRO, SMALL, AND MEDIUM ENTERPRISES (MSMES) IN BANDUNG CITY, INDONESIA

• Main Author: Erlianty, Suci
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/66701
• Institution: Institut Teknologi Bandung

Technological developments, aided by the increased use of the internet, have resulted in the creation of various financial technologies that will make it easier for the public to access financial services via the internet. The purpose of this study was to determine the effect of financial technology on financial literacy of micro, small, and medium enterprises (MSMEs) in Bandung. The researchers surveyed 12 randomly chosen respondents, namely the owners and managers of micro, small, and medium-sized enterprises (MSMEs) in Bandung. Interviews were conducted to collect primary data. This is a form of qualitative study in which data are collected through the use of a purposive sampling technique. Six separate variables, namely performance expectancy, culture, effort expectancy, acceptance of technology, social influence, and perceived security, all promote the adoption of financial technology in their firm. The results showed that the majority of the 12 respondents accepted the existence of financial technology since it facilitated payment interactions between company actors and customers. Additionally, financial technology assists MSMEs in a variety of ways. However, of all the roles of financial technology, the respondents in this study did not fully know what the meaning of financial literacy was because of the lack of it. Respondents said that when it comes to internet loans, they prefer to borrow from banks or people in their close circle since they can be trusted and the interest charged is not excessive. According to the 12 respondents, financial technology has had numerous positive effects on their businesses and the times when business actors are required to employ financial technology. Among the numerous benefits of financial technology, one disadvantage is when the network is interrupted, impeding and delaying the transaction process. Not only that, the administration fees and interest charged by these financial technology services are rather high, which is a source of contention for some business actors.