Fintech Adoption and Financial Inclusion among Indian MSMes: A Conceptual Framework for Digital Financial Capability and Trust
Abstract: Financial technology (FinTech) is changing how enterprises make payments, manage financial records, access credit, and interact with formal financial institutions. For micro, small, and medium enterprises (MSMEs), digital payments, online banking, digital accounting, and technology-enabled lending may reduce transaction frictions and create new routes to financial services. However, technology use does not necessarily produce meaningful financial inclusion. Benefits depend on affordability, service suitability, digital financial literacy, trust, connectivity, and protection from fraud and inappropriate lending. This conceptual paper develops a framework for examining the relationship between FinTech adoption and financial inclusion among Indian MSMEs. It draws on technology-acceptance and technology-organization-environment perspectives and synthesizes selected scholarly and institutional sources. The framework treats FinTech adoption as a multidimensional construct encompassing the breadth, frequency, and business integration of digital financial services. Financial inclusion is considered through access to suitable formal services, regular use, affordability, and perceived accessibility. Digital financial literacy, trust, and perceived barriers are proposed as explanatory factors, while firm characteristics are treated as potential controls. Five testable hypotheses and a quantitative survey design are presented for future research. No primary dataset has been collected or analysed for this manuscript; therefore, it reports no empirical findings. The paper contributes a context-sensitive research model and practical guidance for evaluating whether FinTech adoption supports substantive, responsible financial inclusion rather than merely increasing digital transactions.
Keywords: FinTech; financial inclusion; MSMEs; digital financial services; digital financial literacy; trust; India
How to Cite?: Dr. M. Sasi Bhushan, "Fintech Adoption and Financial Inclusion among Indian MSMes: A Conceptual Framework for Digital Financial Capability and Trust", Volume 15 Issue 10, October 2026, International Journal of Science and Research (IJSR), Pages: 1506-1511, https://www.ijsr.net/getabstract.php?paperid=SR261022105320, DOI: https://dx.doi.org/10.21275/SR261022105320