Financial Literacy Moderation of Fintech and Small and Medium Sized Enterprises Financial Performance in Cameroon’s Mfoundi Division

Abstract

This study investigates the moderating effect of financial literacy on the relationship between fintech adoption and financial performance of Small and Medium-Sized Enterprises (SMEs) in Cameroon’s Mfoundi Division. Using a quantitative research approach, data was collected from 300 respondents through a questionnaire, selected via purposive sampling. The analysis revealed a positive moderation effect of financial literacy on the relationship between fintech adoption and SME financial performance, with a coefficient of 0.122, t-statistic of 2.075, and p-value of 0.038. The findings suggest that SMEs with higher financial literacy levels can leverage fintech adoption to improve their financial performance. These results align with the Theory of Planned Behavior and the Theory of Financial Innovation. The higher the financial literacy of SME owners, the more effectively they utilize fintech to enhance financial performance. The study’s insights have implications for SMEs, policymakers, and fintech providers, highlighting the importance of financial literacy in enhancing the benefits of fintech adoption. The results contribute to the growing body of literature on fintech and SME performance, with a focus on the critical role of financial literacy in moderating this relationship.