ABSTRACT
The employment, creativity, and inclusive economic development of a nation can be identified in consideration to growth of Micro, small, and medium sized businesses (MSMEs). Despite its promising stature in development of the nation, many MSMEs operated by underprivileged groups are witnessing disturbances in cashflows, improper management of collaterals, and financial inefficiencies. Even after witnessing many challenges, MSMEs are adopting financial technology often called FinTech and trying to promote financial inclusion, equity and sustainability in its operations. The current research explores how underprivileged company proprietors or promoters are putting effort into reducing financial gaps in conjuncture with innovations in FinTech such as blockchain technology, mobile banking solutions, digital lending platforms, and AI-supported credit scoring mechanisms. Moreover, it is debatable to measure the contribution of this sector towards its efforts in creating sustainable business models and solutions obtained by using FinTech in enhancing Environmental, Social, and Governance (ESG) initiatives. This study is conducted by using a research approach of mixed-method by employing case studies, trend analysis of financial statements, and interviews of different stakeholders. The results show that FinTech greatly increases operational efficiency, financial openness, and availability of tailored financial solutions, therefore enabling MSMEs to use sustainable practices without compromising income. Above all, inclusive FinTech models help to remove regional and gender stereotypes by satisfying specific financial criteria. Emphasizing data security, algorithmic fairness, and inclusive standards, the study presents a legislative framework to assure responsible FinTech dissemination. The outcomes study recommends shifting from transactional to transformational financial inclusion to support FinTech as a catalyst of fair and vibrant MSME ecosystems.
