FOSTERING FINANCIAL INCLUSION IN WEST NUSA TENGGARA: EMPOWERING RURAL MSMES THROUGH DIGITAL FINANCIAL LITERACY AND FINTECH INTEGRATION

Abstract

Financial inclusion remains a critical challenge for rural Micro, Small, and Medium Enterprises (MSMEs) in West Nusa Tenggara (NTB), Indonesia, due to limited digital literacy and barriers to formal financial services. This international community service project aimed to foster financial inclusion by empowering 5 rural MSME owners in Lombok, NTB, through targeted digital financial literacy training and financial technology (FinTech) integration. The initiative deployed a participatory asset-based community development approach, combining structured workshops, hands-on mentoring, and the adoption of digital accounting and payment systems. The results demonstrated a substantial increase in participants’ financial literacy scores and a 68% adoption rate of digital payment applications (QRIS) and mobile bookkeeping. By bridging the digital divide, the project enhanced the operational resilience and financial visibility of rural enterprises. This intervention underscores the necessity of continuous local mentoring and multi-stakeholder collaboration to sustain digital transformation and build long-term economic resilience in underserved regions.