Financial Technology-Based Transaction Model in Sasak Woven Fabric MSMEs, Lombok

Abstract

The development of financial technology (fintech) in Indonesia has significantly transformed the financial services sector. The establishment of MSMEs can facilitate improvements in community welfare and in the country's economy. Sasak woven cloth MSMEs experience sales obstacles due to a lack of resources to master fintech. This study aims to analyze the application, role, and challenges of financial technology in Sasak woven cloth MSMEs in Lombok. The research method used is a descriptive qualitative approach, with data collected through interviews, observations, focus group discussions (FGDs), and documentation. The results show that the application of fintech in Sasak woven cloth MSMEs is still limited to QRIS and bank transfers, with different adoption rates between Sade and Sukarara Villages. Sade Village tends to be passive in accepting fintech due to low literacy factors and the dominance of traditional culture, while Sukarara Village is more open thanks to the support of cooperatives and consumer behavior accustomed to non-cash transactions. Fintech has been proven to improve the quality of MSME services, especially through easier payments and increased customer satisfaction. However, the study also identified several key challenges in implementing fintech, including strong cultural resistance, low levels of education and digital literacy in the community, and minimal ongoing support from the government and financial institutions. Based on these findings, synergistic efforts between the government, banks, and local communities are needed to expand digital literacy, provide adequate infrastructure, and integrate fintech into the development strategy of culture-based tourism villages.