The Impact of Technology Adoption, Digital Literacy and Regulation on the Sustainability of MSMEs in ASEAN through FinTech Partnerships with Banks or Traditional Financial Institutions as Intervening Variables

DOI

10.2991/978-2-38476-543-0_17How to use a DOI?

Keywords

ASEAN; FinTech; MSME Sustainability

Abstract

The present study examines the impact of technology adoption, digital literacy, and regulations on the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in ASEAN, with partnerships between FinTech and banks or traditional financial institutions as intervening variables. The focus of this study is to understand how synergy between FinTech and traditional financial institutions can catalyze the sustainability of MSMEs in the ASEAN region, which are facing the challenges of the digital era. The research method employed was a quantitative approach using path analysis. Primary data was obtained through a survey of MSMEs in various ASEAN countries, while secondary data was obtained from industry reports and related publications. Variables such as technology adoption, digital literacy, regulation, and MSME sustainability were measured using indicators validated through statistical tests. The researchers used stratified random sampling to select 400 MSMEs as respondents. The research results show that technology adoption and digital literacy have a direct and significant positive impact on MSME sustainability. Regulation has an indirect effect on MSME sustainability, mediated by partnerships between FinTech and traditional financial institutions. These partnerships have been shown to strengthen MSME access to more efficient, innovative, and inclusive financial services. The main conclusion of this study is that Integration between FinTech and conventional financial systems plays a crucial role in supporting the sustainability of MSMEs through the use of technology and improving digital literacy. This study suggests that ASEAN governments need to create a regulatory framework that supports innovation while ensuring that technology adoption is inclusive for MSMEs at all levels.

Copyright

© 2026 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Dwi Prastiyo Hadi
AU  - Ika Indriasari
AU  - Chadyan Fathurachman
PY  - 2026
DA  - 2026/02/26
TI  - The Impact of Technology Adoption, Digital Literacy and Regulation on the Sustainability of MSMEs in ASEAN through FinTech Partnerships with Banks or Traditional Financial Institutions as Intervening Variables
BT  - Proceedings of the 8th International Conference on Education and Social Science Research (ICESRE 2025)
PB  - Atlantis Press
SP  - 167
EP  - 181
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-543-0_17
DO  - 10.2991/978-2-38476-543-0_17
ID  - Hadi2026
ER  -