The Role of a Secure Digital Identity in Increasing Trust Toward Fintech
Jakarta, 4 November 2021 – The government, business stakeholders and legal fintech players have voiced their commitment in eradicating illegal fintech. It is also followed with the effort in educating the public in recognizing a secure Peer to Peer Lending Fintech and preventing the misuse of public personal data. On the other hand, the use of secure digital identity services like a certified digital signature is believed to be a solution at minimizing the opportunity for misusing personal data because of its capability at verifying user data in a secure manner. In the long term, a secure digital identity will be able to increase a sense of security and public trust toward fintech and their optimism toward the national digital economy.
Ardi Sutedja, Founder and Chief of Indonesia Cyber Security Forum (ICSF) said, “The practice of misusing consumer personal data by illegal fintech has become the source of various identity fraud problems, from material loss up to the decreasing of public trust toward legal digital financial services. Here is where secure digital identity services play a key role in returning or even strengthening public trust.”
Ardi also adds that fintech is able to utilise certified digital signature services, e-KYC (Know Your Customer) process or data verification toward their user using a biometric verification system that is based on population data and liveness detection. This can be strengthened with issuance of digital certificate as a proof of a valid verified digital identity and can be used to perform electronic signatures.
Sati Rasuanto - CEO and Co-founder VIDA, Deputy Secretary General IV & Head of The Personal Data Protection Task Force at the Indonesian Fintech Association (AFTECH) said, “With the ability to verified fintech user data, perform authentication and signature digitally, Certificate Authority or CA like VIDA have a strategic role as a trusted layer that not only give a sense of protection while doing digital transaction, but also help user to behave safely in the digital world. Sense of safety becomes crucial in building a digital economy ecosystem where each player has mutual trust. Especially considering that fintech activities are without borders and face to face interaction.”
Sati added, in addition to regulatory compliance, digital trust principle in protecting privacy and user data security should be a shared awareness. Given that data protection has become a digital platform user concern, including fintech. Therefore, a secure digital identity education needs to be encouraged by all parties, so risks such as identity fraud can be mitigated.
The same thing also voiced by one of Fintech player, Dickie Widjaja, Chief Information Officer (CIO) Investree dan Deputy Secretary General Asosiasi FinTech Indonesia, in the same discussion he said, “illegal Fintech irresponsible action has an impact on the decrease of public trust toward fintech. Even though, fintech can bring a huge potential not only for their user but also for the digital economy growth of Indonesia. This is where the importance of digital identity services plays a strong role in building public trust. Digital security is a long-term investment because of their ability in giving fintech accountability and credibility, and in a bigger scale contributing at increasing public trust and optimism toward digital financial services.”
McKinsey Global Institute Report at 2019 have estimated that digital identity is able to jumpstart economic potential in developing countries by 50-70 percent, with adaptation level reaching 70 percent. In fact, the use of digital identity is estimated to create an economic value equivalent to 3-13 percent PDB in 2030.
Gajendran Kandasamy, COO and Co-Founder VIDA explain, “VIDA main mission is to create a digital identity system that is trusted and frictionless. For that, we apply the best practices for security and data protection, where we make sure that each technical or legal component must be fulfilled. We design a user experience (UX) that is easy and comfortable to use but inline with security element. It is important to understand that UX design plays a role in shaping safe user behavior in the digital world.”
Currently VIDA is the first CA in Indonesia that obtains WebTrust global accreditation for the implementation of internet security standard, and applying facial biometric in doing verification and authentication to give a sense of ease and convenience for users. VIDA digital signature is the only digital signature that is recognized in 40 countries, because VIDA is the first CA in Indonesia that is listed in Adobe Approved Trust List (AATL) or a list of Adobe trusted partners. In terms of providing digital identity services, VIDA has also been registered as Digital Financial Innovation (IKD). e-KYC cluster is registered in OJK as well as regulatory sandboxes in OJK and Bank Indonesia, said Gajendran.
With their current position, VIDA plays a strategic role at maximizing Indonesia digital transformation, especially in information security and privacy that utilize certified digital identity that is secure and trusted.
Tentang VIDA - PT Indonesia Digital Identity
PT Indonesia Digital Identity (VIDA) is a licensed Certificate Authority (CA) under the Indonesian Ministry of ICT, authorized to issue digital certificates that can be applied for digital signatures and web authentication. Established in 2018, VIDA is a digital identity network leveraging multi-factor authentication, digital signatures, and verified identities. VIDA applies world-class data security standards, including Public Key Infrastructure, facial recognition, and endpoint security to provide comprehensive cyber security solutions.
VIDA is also listed as an Digital Financial Innovation (Inovasi Keuangan Digital / IKD) registered with the OJK. The products and solutions offered by VIDA can be adopted by various sectors and industries, including the financial services industry to make it easier to verify direct customers. VIDA also believes in instilling digital trust among its users and by virtue, thus, the company has been registered under the OJK and BI regulatory sandbox.
VIDA also applies world-class technology standards that are certified and recognized internationally. The company became the first Certificate Authority (CA) company that obtained WebTrust certification and listed in the Adobe Approved Trust List (AATL) in Indonesia, and also is ISO 27001 certified.
About Indonesia Cyber Security Forum (ICSF)
Indonesia Cyber Security Forum or abbreviated as ICSF, is a non-profit professional association legal entity in the field of National Cyber Security & Resilience which was formed based on the Deed of Notary RA Mahyasari A. Notonagoro, SH, dated November 16, 2017, and with Deed Number # 21. And obtained ratification based on the Decree of the Minister of Law & Human Rights of the Republic of Indonesia No. # AHU-0017778.AH.01.07. year 2017.
ICSF has an open membership and comes from multi-stakeholder elements, both from the government, TNI & Polri, the business world, universities, and the general public. The various ICSF activities include matters relating to the cyber world or cyberspace, actively promoting increased security and resilience in the cyber world, as well as encouraging the development of a positive culture of society in using the internet wisely, safely and ethically.
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VIDA - PT Indonesia Digital Identity