The digitalization of Micro, Small, and Medium Enterprises (MSMEs) has become a crucial strategy for enhancing competitiveness in the digital economy era. This study examines the utilization of digital technology by MSMEs in Bandung City, as well as the challenges and opportunities faced during the digital transformation process. Employing a literature review approach and the Systematic Literature Review (SLR) method, this research identifies the impact of the digital economy on MSMEs, including the use of cloud computing for data storage and analytics to understand consumer behavior. Despite challenges such as digital literacy gaps and budget constraints, support from the government through initiatives like the UMKM Go Digital Movement and Bandung Smart City has accelerated digitalization efforts. These programs provide significant training and assistance, with over 5,000 MSMEs receiving digital training and reporting an average revenue increase of 30%. The study concludes that collaboration among government, academia, and the private sector is essential to ensure the sustainability of MSME digital transformation. Policy recommendations are also suggested to support MSMEs in adopting digital technology more effectively

This study aims to analyze the influence of financial literacy, financial technology (fintech), and financial inclusion on the performance of micro, small, and medium enterprises (MSMEs) in Bandar Lampung City. Financial literacy is an important factor that allows MSMEs to understand financial products and services effectively. Meanwhile, fintech provides easy access to various financial services, which are expected to improve MSME operations. Financial inclusion, which involves accessibility of financial services for all levels of society, plays an important role in supporting the development of MSMEs.This type of research uses quantitative research with an ex-post-facto approach . The population of this study is MSME actors in Bandar Lampung City with a sample size of 106 MSME actors. The location of the study is in Bandar Lampung City. Data collection was carried out by distributing questionnaires. The validity of the instrument using the Person Product Moment correlation resulted in 53 items being declared valid. The reliability test of the instrument used Alpha Croncah ( ? > 0.60), the results showed that all variables were declared reliable. The prerequisites for the analysis were tested through normality, multicollinearity and heteroscedasticity tests. Data analysis using multiple linear regression was used to test the effect of independent variables simultaneously on the dependent variable.         The results of the study show that: (1) there is a positive and significant influence of financial literacy on the performance of MSMEs in Bandar Lampung City which is quite large, namely if every 1 unit increase in financial literacy can increase MSME performance by 0.528 units . (2) There is a positive and significant influence of the FinTech variable on the performance of MSMEs in Bandar Lampung City which is quite large, namely if every 1 unit increase in the adoption of financial technology has the potential to increase MSME performance by 0.518 units. (3) There is a positive and significant influence on the financial inclusion variable on the performance of MSMEs in Bandar Lampung City which is smaller, namely an increase of 0.204 units . (4) There is a simultaneous and positive influence of financial literacy, fintech, and financial inclusion on the performance of MSMEs in Bandar Lampung City at a confidence level of 99%.