Digital Financial Innovation and Access to Inclusive Financing for New Business Development

Abstract

Digital transformation in the financial sector has provided a great opportunity to expand access to financing for new business actors, especially micro, small, medium enterprises (MSMEs), and startups. This study aims to examine the role of digital finance innovation in access to inclusive financing by using a literature study method on 12 scientific articles. The results of the study show that services such as fintech lending, crowdfunding, and digital wallets are able to reduce geographical and administrative barriers in financing. These innovations significantly improve transaction efficiency, expand financial inclusion, and drive the growth of new entrepreneurs. However, the success of this innovation is highly dependent on digital literacy, infrastructure readiness, and adaptive and collaborative regulations. This research recommends an ecosystem approach between the government, the fintech industry, and the community to build an inclusive, secure, and sustainable digital financial system, especially for the emerging business sector.