Hybrid Model for MSME Financing: Collaboration between Fintech and Microfinance Institutions in Underdeveloped Regions

Micro, Small, and Medium Enterprises (MSMEs) in underdeveloped regions face difficulties accessing financing through conventional banking institutions. This study analyzes a hybrid financing model that combines financial technology (fintech) with microfinance institutions to improve financial inclusion in underdeveloped areas. The research method uses a quantitative approach with secondary data analysis from the Financial Services Authority and field surveys of 150 MSMEs in five underdeveloped provinces. Research results show that the hybrid model can increase financing access by 65% compared to conventional systems. Fintech-MFI collaboration reduces operational costs by up to 40% and accelerates credit approval processes from 14 days to 3 days. This model proves effective in reaching unbankable segments with a 92% repayment rate. Research recommendations include strengthening regulations, improving digital literacy, and developing technology infrastructure in underdeveloped regions.