Financial Technology Adoption and Financial Inclusion among SMEs: Examining the Role of Digital Financial Access

Abstract

This study is motivated by the limited access of small and medium enterprises (SMEs) to formal financial services amid the rapid development of digital technology. This study aims to analyze the effect of financial technology adoption on financial inclusion, with the role of digital financial access as a mediating variable. The research employs a quantitative approach with an explanatory design. Data were collected through Likert-scale questionnaires distributed to SME actors selected using purposive sampling. Data analysis was conducted using regression and SEM-PLS to examine both direct and indirect relationships among variables. The results indicate that financial technology adoption has a positive and significant effect on financial inclusion, both directly and through digital financial access as a mediating variable. These findings highlight the importance of accessibility in maximizing the benefits of financial technology. This study recommends strengthening digital infrastructure and financial literacy to enhance financial inclusion among SMEs.