Financial technology and financial inclusion: Increasing access to finance of micro, small, and medium enterprises

Financial technology has the potential to revolutionize how Micro, Small, and Medium Enterprises (MSMEs) in Calapan City, Oriental Mindoro, access financial services. Despite the promising advancements in digital finance, many MSMEs still face significant barriers in achieving full financial inclusion. This study examines the impact of digital payments, digital lending, and digital banking on financial inclusion among MSMEs in Calapan City. Utilizing a quantitative correlational research design, the study collected data from 207 retail and distributor MSMEs using a validated questionnaire. The findings reveal that while the use of digital payments shows a positive but weak relationship with financial inclusion, digital lending and digital banking had minimal impact. These results indicate that digital payments are the most effective tool for enhancing financial inclusion within the local MSME sector. The study highlights the need for targeted interventions, such as enhancing digital literacy, addressing infrastructure challenges, and building trust in financial technologies. This research contributes to the development of a Financial Technology Adoption Framework that can guide policymakers, financial institutions, and MSMEs in expanding access to financial services and driving local economic growth.