Analysis of MSME Actors' Experience in Digital Financial Literacy Mentoring of the MANTAP MSME Program in Malang City

Abstract

This study aims to explore the experiences of micro and small business owners in Malang City who participated in the UMKM MANTAP digital financial literacy mentoring program, focusing on the transformation process, adoption barriers, and the meanings participants constructed from the program. A qualitative phenomenological approach was employed, involving 15 participants who had completed at least 75% of the program sessions and actively implemented digital financial practices in their businesses. Data were collected through in-depth semi-structured interviews, participatory observation, and document review, and were subsequently analyzed using phenomenological thematic analysis. The findings identified three main themes: (1) digital financial literacy transformation, which occurred gradually through the stages of confusion, exploration, and internalization; (2) drivers of adoption, including peer support among MSME actors, continuous mentoring, and direct economic incentives; and (3) barriers to adoption, including limited internet connectivity, complexity of fintech verification processes, and concerns over digital transaction security. Most participants reached the internalization stage within three to four months, with an average operational time savings of 2–3 hours per day with a substantial reduction in record-keeping errors. This study concludes that the success of MSME digital financial literacy transformation relies on experiential learning approaches and community support, rather than technical training alone. These findings offer practical implications for designing more contextual and sustainable digital financial literacy mentoring programs within Islamic higher education institutions and Indonesian MSME communities.