Secure Digital Identity Plays a Role in Increasing Trust in Fintech

Updated: May 24

The government, business associations, and fintech industry players continue to promote their commitment to eradicate illegal fintech, as well as better educate the public about secure Fintech Peer-to-Peer Lending (P2PL) in order to prevent misuse of personal data. To minimize the risk of this occurring, users are required to use secure digital-identity services such as certified digital signatures (TTE). It is hoped that in the long term this will increase people’s sense of security and trust in fintech as well as their optimism about the national digital economy.

Chair and Founder of the Indonesia Cyber ​​Security Forum (ICSF) Ardi Sutedja said, "The misuse of consumer personal data by illegal fintech is a source of various identity-fraud problems, ranging from material losses to reduced trust in legal digital financial services. Digital-identity services play a key role in restoring and even strengthening public trust.”

In the future, fintech will benefit from:

  • Certified TTE services

  • The e-KYC (Know Your Customer) process comprises user data verification using a biometric verification system based on population data and liveness detection

  • Issuance of electronic certificates as evidence of a valid verified digital identity that can be used for digital signatures

Sati Rasuanto, CEO and Co-founder of VIDA and Deputy Secretary General IV & Head of The Personal Data Protection Task Force at the Indonesian Fintech Association (AFTECH) said, "With the ability to verify fintech user data, authenticate and digitally sign, electronic certification operators (PSrE) such as VIDA play a strategic role by providing a trusted layer that not only provides a sense of protection when transacting digitally but also a sense of security, too. This is especially important considering that fintech activities are limitless and do not involve face-to-face meetings.”

In addition to complying with regulations, a common awareness of the principle of digital trust in protecting the privacy and security of user data is required. Fintech player Dickie Widjaja, Investree's Chief Information Officer (CIO) and Deputy Secretary-General of the Indonesian FinTech Association said, "Irresponsible behavior by illegal fintech leads to decreased public trust in fintech. Fintech brings enormous potential both for its users and for the growth of the digital economy in Indonesia. Digital security is a long-term investment because it can provide fintech accountability and credibility, and increase trust and optimism in digital financial services.”

A report by The McKinsey Global Institute in 2019 estimated that digital identities could revive 50-70 percent of the economic potential in developing countries, with the adaptation rate reaching around 70 percent, and account for between three and 13 percent of GDP in 2030.

Gajendran Kandasamy, COO and Co-Founder of VIDA, explained, “VIDA has a primary mission to create a trusted and seamless digital identity system. We ensure that both technical and legal components are met, by designing a user experience (UX) that is easy and convenient but still in line with security elements.”

VIDA is the first PSrE in Indonesia to also obtain a global WebTrust credit for the application of internet security standards, and apply facial biometrics for verification and authentication for a convenient and comfortable user experience. VIDA’s TTE is also the only one to be recognized in more than 40 countries because VIDA is the first PSrE from Indonesia to be included in the Adobe Approved Trust List (AATL).

VIDA plays a strategic role in maximizing Indonesia's digital transformation, especially in terms of information security and privacy by utilizing a secure and trusted digital certified identity. For more information about products and solutions from VIDA, please click here.

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