A STUDY OF THE ROLE OF FINANCIAL TECHNOLOGY IN FIRM GROWTH: THE CASE OF INDIAN MSMEs

Purpose: The purpose of this paper is to examine the role of Financial Technology on registered Micro, Small and Medium enterprise of India. The paper reveals the viewpoint of MSME sector on Risk Management, Financial needs, and Use of Technology. The paper also revealed the respondents' behavioural intention for adopting Financial technology as well as preferences and acceptance for using financial technology. Also, the impact of financial technology acceptance on firm growth is studied. Design/methodology/approach: The paper was based on a descriptive and inferential research design for which original data is collected using a close ended questionnaire. The measurement items used in the questionnaire were derived from previous studies carried out in developing countries. Findings: The Financial technology has changed the ecosystem of Indian MSMEs as well as Banking Sector. The Financial technology acceptance rate among the MSMEs is high as 49.2% respondents consider themselves as Early Adopters. MSMEs believes that financial products and services available to them through traditional banks does not sufficiently meet their business's needs (6% non -adopters, 24% early -adopters and 18% moderateadopters) which echoes the need of alternate finance. Further 2% non -adopters, 47% earlyadopters and 46% moderate -adopters strongly agreed that using technology is vital for Business Financial needs. Also, Financial technology acceptance has significantly positive impact on their growth in terms of Turnover, Profitability, Market share, and Productivity. Originality/value: This empirical study contributes to the novel understanding of the acceptance and preference of MSME sector towards Financial technology and studies the impact of Financial technology acceptance on Firm growth.