THE EVOLUTION OF FINTECH: TRENDS, INNOVATION, AND FUTURE PERSPECTIVE IN MICRO ENTERPRISE INDUSTRY.

Abstract

Abstract: The research examines the evolution of financial technology (FinTech) and its transformative potential in the microenterprise sector, offering innovative solutions to improve financial access, reduce costs, and enhance transparency. Microenterprises, comprises over 99% of India’s MSME sector and providing employment to nearly 97% of its workforce, are vital to the economy,  faces significant challenges, such as limited access to formal financial services, poor digital literacy, and infrastructural constraints. The study aims to explore how FinTech, through innovative tools like microloans, digital payments, and cash flow management, can bridge these gaps, empowering microenterprises to overcome barriers and thrive. Key opportunities include promoting financial inclusion, enabling tailored financial solutions, expanding market reach, and fostering gender equity by supporting female entrepreneurs. The study highlights the need for enhanced digital infrastructure, simplified compliance, and targeted literacy programs to promote FinTech adoption. Based on extensive secondary data and literature, this research underscores FinTech's capacity to drive innovation, resilience, and equitable growth in the microenterprise ecosystem. It advocates for strategic collaboration between government, industries, and new age institutions to unlock FinTech's full potential, fostering economic stability and social inclusion across India. This integration promises not only to support India’s broader developmental goals but also to revolutionize how microenterprises access and utilize financial resources.