The Financial Technology (Fintech) market is growing rapidly, alongside the growth of Small and Medium Enterprises (SMEs) in Indonesia. However, there are still no clear legal regulations related to the application of fintech. In addition, collaboration is needed in optimizing the implementation of fintech from related parties. Furthermore, increasing understanding of financial literacy can also be considered as a driving factor in the application of fintech. Therefore, the purpose of this study is to examine policies related to the application of financial technology through regulation, collaboration and financial literacy for small and medium businesses in Indonesia. Clear regulation will increase customer trust, data security and user design appearance, which is what influences the application of fintech. On the other hand, the business and government ecosystems need to maintain collaboration with an active role to encourage the development of fintech collaboration within and throughout the business ecosystem. Furthermore, financial literacy is the best way to teach consumers about the benefits of having a relationship with financial institutions including funding and credit, the ability to build positive finance. This study uses a literature review approach by examining the results of existing studies. The results of this study are expected to be used by the government, business people and society as consumers increase their understanding of the application of fintech and, at the same time, in making strategic policies.