From FinTech Adoption to Financial Resilience: How FinTech Assimilation, Digital Cash-Flow Visibility, and Cybersecurity Readiness Shape MSME Capability Development
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Abstract
The increasing adoption of financial technology (FinTech) among micro, small, and medium enterprises (MSMEs) has created new opportunities for improving financial resilience; however, the mechanisms through which digital technologies generate resilience capabilities remain insufficiently understood, particularly in rural emerging economies. This study examines how FinTech assimilation influences MSME financial resilience by investigating the mediating role of digital cash-flow visibility and the moderating role of cybersecurity readiness. Using a quantitative explanatory approach, data were collected from 228 MSMEs in Soppeng Regency, Indonesia, and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The results demonstrate that FinTech assimilation significantly enhances MSME financial resilience, with digital cash-flow visibility serving as a key mediating mechanism that transforms digital financial resources into actionable financial capabilities. Furthermore, cybersecurity readiness significantly conditions the relationship between FinTech assimilation and digital cash-flow visibility, highlighting the importance of complementary security capabilities in digital transformation. This study contributes to the FinTech and MSME resilience literature by shifting the focus from technology adoption toward post-adoption capability development. The findings provide practical implications for MSMEs, policymakers, and FinTech providers in designing sustainable digital transformation strategies.
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