PENGARUH FINANCIAL TECHNOLOGY DAN MARKET REACH MELALUI PEMANFAATAN MEDIA SOSIAL TERHADAP PENINGKATAN INKLUSI KEUANGAN UMKM DI KECAMATAN KARAWANG BARAT

Abstract

The development of financial technology and market reach through social media opens up opportunities to increase financial inclusion. Therefore, this study aims to analyze the influence of financial technology and market reach through the use of social media on financial inclusion in MSMEs. This study uses a quantitative approach with primary data obtained through direct distribution of questionnaires to 98 respondents selected from a population of 5,459 MSMEs using the Slovin formula. Data analysis was conducted using Structural Equation Modeling (SEM) based on Partial Least Square (PLS) using SmartPLS. The results show that financial technology and market reach can increase financial inclusion in MSMEs. Meanwhile, social media cannot be a moderating variable in the relationship between financial technology and market reach on financial inclusion. The results of this analysis add to the information that the use of social media by MSMEs is still more focused on marketing activities and is not optimally utilized to increase their access to formal financial services.