THE IMPACT OF FINANCIAL TECHNOLOGY ADOPTION ON FINANCIAL PERFORMANCE OF MSMES IN SUBANG REGENCY, WEST JAVA, INDONESIA

Abstract

Financial technology (fintech) has rapidly developed and transformed the financial services sector, providing new opportunities for businesses, particularly Micro, Small, and Medium Enterprises (MSMEs), to improve their financial management and operational efficiency. This study aims to analyze the impact of financial technology adoption on the financial performance of MSMEs in Subang Regency. The research employs a quantitative approach using primary data collected through structured questionnaires distributed to MSME owners. The collected data were analyzed using descriptive statistics and simple linear regression analysis to examine the relationship between fintech adoption and financial performance. The results of the study indicate that financial technology adoption has a positive and significant effect on the financial performance of MSMEs. MSMEs that adopt fintech services such as digital payments, mobile banking, and online financial platforms tend to experience better financial performance through improved transaction efficiency, better cash flow management, and increased revenue opportunities. However, the level of fintech adoption still varies among MSMEs due to differences in digital literacy and technological readiness. Therefore, strengthening digital literacy and promoting fintech adoption programs are essential to support MSME development and improve business sustainability. The findings of this study provide important insights for policymakers and financial institutions in developing strategies to encourage fintech utilization among MSMEs.