THE ROLE OF FINTECH IN SUPPORTING UMKM IN THE DIGITAL ERA ON JALAN PANCING MEDAN

Abstract

This research aims to understand the role of fintech in the rate of development of UMKM in the digital era by implementing the services provided by fintech to UMKM players. The method used is descriptive qualitative with secondary data collection techniques, namely data collected by other parties, such as government reports and previous research results. The research results explain that (1) With crowdfunding, it can make it easier to carry out fund transactions from all over the world. FINTECH also makes it easy to transfer money from abroad easily, even from foreigners. International shopping is very easy because payment systems such as PayPal carry out transactions automatically. It is hoped that UMKM will benefit from the existence of FINTECH which can help their business grow. One of them relates to loans for UMKM capital to obtain financing loans. (2) Services provided by fintech to UMKM players such as non-cash payment platforms (ovo, gopay, doku), fund lending platforms (Kredivo, Uang Teman, Modalku), investment platforms (Investree, Amartha, Santara) and bookkeeping and financial reporting platforms ( Bukukas, QuickBooks). Fintech is making business financing easier and faster. Fintech makes the biggest contribution to increasing financial inclusion in terms of access to financing for UMKM previously not served by banks. (3) There are weaknesses in fintech services for UMKM players, namely limited access, lack of knowledge of using fintech services effectively, and concerns about data security risks. The results of this research explain that with innovation from fintech services, we can develop more flexible products with better methods for solving problems faced by UMKM.