FINANCIAL LITERACY MODERATE THE EFFECT OF FINTECH ON THE FINANCIAL PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)

Abstract

The purpose of this study was to determine the effect of fintech on the financial performance of Micro, Small and Medium Enterprises (MSMEs) with financial literacy as a moderating variable. The population in this study were all MSMEs in the traditional Balinese culinary sub-sector in the Sarbagita area. The sampling technique used in this study is non-probability sampling where the data used is in the form of primary data obtained from the results of questionnaires distributed to MSMEs in the Sarbagita area. The data analysis method used is the Structural Equation Model (SEM) based on Partial Least Square (PLS). The results in this study are Financial technology (Fintech) has a positive effect on financial performance and financial literacy strengthens the positive influence of financial technology (Fintech) on financial performance. Fintech as a form of innovation in the financial sector has proven to be able to improve the financial performance of traditional culinary SMEs in the "Sarbagita" area.