THE ROLE OF FINANCIAL LITERACY AND FINTECH LITERACY IN SHAPING MSME DIGITAL READINESS

Abstract

Digital transformation in the financial sector requires adequate digital readiness from Micro, Small, and Medium Enterprises (MSMEs) so that the use of financial technology has a sustainable impact. This research aims to map and synthesize literature related to the role of financial literacy and fintech literacy as the foundation of MSMEs' digital readiness. The method used was a scoping review of 25 reputable journal articles indexed by SCOPUS in Q1, Q2, and Q3 rankings. The research process includes identification, selection, and extraction of article data using structured extraction sheets, followed by thematic analysis and narrative synthesis to group key conceptual findings. The results of the scoping review show that financial literacy serves as a basic cognitive capacity in economic decision-making, while fintech literacy emerges as a specific extension that focuses on understanding the products, mechanisms, and risks of financial technology. The digital readiness of MSMEs is presented as a multidimensional construction that includes cognitive, behavioral, technical, and organizational aspects, and is formed through the process of literacy and continuous learning. Overall, this study concludes that the digital readiness of MSMEs cannot be understood as an initial condition or simply a technology adoption, but rather as a strategic outcome built through strengthening financial literacy and fintech literacy. These findings make a conceptual contribution to the development of MSME digital transformation studies and become the basis for further empirical research.