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Identity Verification Crucial as Indonesia’s Fintech Sector Booms
Indonesia’s financial services sector has undergone a rapid digital transformation, bringing greater convenience and efficiency to consumers and businesses alike. However, with this growth comes new challenges, particularly in ensuring the security and authenticity of digital transactions.
As the number of fintech companies in Indonesia grows, so does the importance of identity verification in financial services. According to recent data, the number of fintech companies has increased sixfold over the past decade, from 51 active companies in 2011 to 334 in 2022.
The Importance of Digital Signatures
Digital signatures are crucial in transforming financial services, securely validating electronic documents and transactions, making processes more efficient, reducing paperwork, and enabling remote operations. Digital signatures offer a secure method of signing important documents, just like traditional pen-and-paper signatures, but with an added layer of security and convenience.
Regulatory Landscape
Financial institutions in Indonesia prioritize compliance with regulatory standards. By using digital signatures, they can adhere to the country’s regulatory framework, including the Personal Data Protection Law (UU PDP No.27/2022), which outlines the legal framework for protecting personal data in Indonesia.
The law requires financial service providers to obtain explicit consent from users before collecting, using, or sharing their data. Implementing identity-verified digital signatures in the consent process strengthens the integrity of this consent, mitigating the risk of fraudulent activities and unauthorized access to sensitive data.
Consequences of Non-Compliance
- Failure to comply with the consent requirements and ensuring proper identity verification can result in severe penalties and fines for financial service providers.
- These include compensation lawsuits, administrative sanctions, and criminal penalties.
- The consequences of non-compliance not only have financial implications but can also damage an organization’s reputation, leading to a loss of trust among customers.
VIDA as a Trusted Certificate Authority
As a trusted Certificate Authority (CA) under the Ministry of Communications and Informatics, VIDA participates in securing users’ data for digital signature services. VIDA products have received certification from WebTrust, Adobe Approved Trust List, ISO 27001, and the Cloud Signature Consortium TSP to increase digital trust.
VIDA’s comprehensive security features, including Public Key Infrastructure, network security, and biometric authentication powered by top-global biometric AI verification with liveness detection, provide an instant, seamless, and secure user experience. This ensures the identity of users of digital services can be guaranteed, minimizing fraud and protecting user identities.
With VIDA’s trusted digital signature solutions, the public can have confidence in utilizing fintech services, knowing their identity is protected.