Exploring the Role of Fintech Solutions on Financial Inclusion Among MSMEs in Bengaluru: The Impact of Technology Infrastructure, Regulatory Environment, and Digital Literacy

Abstract

The study explores the role of financial technology solutions on financial inclusion among micro, small, and medium enterprises in Bengaluru. The dimensions contributing to fintech solutions such as technology infrastructure, regulatory environment, and usage expediency are considered. The mediating effect of digital literacy of MSME owners is analyzed between fintech solutions and financial inclusion. Purposive sampling is administered to select sample of 435 MSME owners. Causal research design is adopted. Questionnaire is employed to collect data from the MSME owners. Percentage analysis, structural equation modeling, one-way ANOVA, and post-hoc tests are used to analyze data. Results showed that technology infrastructure contributes more to attain fintech solutions for MSME units. Results also confirmed that fintech solutions have the most significant influence on financial inclusion, while digital literacy does not mediate the relationship. Findings proved that age, education, annual revenue, and type of business significantly affect research variables, though gender does not. The findings provide valuable visions for enhancing financial inclusion among MSMEs and managing imminent strategies for economic growth and financial accessibility.