In the crazy whirlwind of the COVID-19 pandemic, our lives basically turned into a digital playground, with fintech and online shopping calling the shots. That whole digital lifestyle we got cozy with during lockdowns? Well, turns out it stuck around even after the pandemic. It’s like industries did a makeover and went for a hybrid mode, and Indonesia’s totally owning the scene.
So, here’s the deal: Indonesia’s economy is making a comeback, all thanks to the digital revolution. In 2021, the country’s digital economy skyrocketed to a jaw-dropping $70 billion, making it the big shot of Southeast Asia. But, you know how it is – with great digital power comes great digital responsibility. Unfortunately, this growth also attracts cybercriminals ready to exploit online users.
To keep your business on the safe side and your customers out of harm’s way, you need to step up your cybersecurity game. Find out the lowdown on creating a rock-solid digital fortress against these cyber threats in the article below.
Indonesia’s Digital Economy
Indonesia’s digital economy experienced massive growth in its digital economy sector, with e-commerce and fintech leading the growth.
According to a 2021 World Bank’s research about the Digital Economy in Indonesia, Indonesia’s e-commerce gross merchandise value increased by 52% from US$21 billion in 2019 to US$32 billion in 2020.
Fintech services also rose in popularity alongside e-commerce. In Indonesia, fintech services could be majorly categorized into payment, lending, aggregating, crowdfunding, and financial planning sectors. According to BCG in their 2023 survey report titled Indonesia’s Fintech Industry Is Ready to Rise, Indonesia’s fintech sector will likely grow 26% each year during 2020-2025. The same source also says that the value of fintechs in Indonesia is estimated to be around US$20 – 25 billion in 2023.
The graph above is extracted from a 2019 research infographic titled ‘Descriptive Analysis of the Fintech Industry in Indonesia: Regulations and Network Security in the Perspective of Digital Technology’. It illustrates the distribution of fintech services available in Indonesia, indicating that payment and lending remain the most popular services. Additionally, the same infographic highlights that in 2021, up to US$36.6 billion was processed through digital payments, encompassing digital commerce, mobile banking, and P2P lending.
The Push for Digitization
Many companies are shifting to digital services due to various factors, and the lockdowns in 2020-2021 played a significant role in this transition. In the case of e-commerce and fintech, here are some factors on why people are choosing it over their traditional counterparts:
- Indonesia’s large population. With almost 275 million inhabitants, Indonesia’s large population brings opportunities for numerous business ventures to open up, from small mom-and-pop stores (more commonly known locally as UMKM) to established companies, e-commerce, and fintech enable them to reach out to vast customers from across the country.
- Rising middle-class population The increase in the middle-class population means an increase in purchasing power and disposable income. With this, more people can buy items that they desire.
- The increased internet penetration and smartphone use. More than 70% of Indonesians own a smartphone, with the increase of internet penetration and digital literacy, more people will see the benefits of a digital economy.
- Overall convenience, e-commerce, and fintechs can penetrate any community with adequate internet access. Aside from that, they are much more convenient as consumers can access them anytime with only a mobile phone.
How Cybersecurity Comes into the Picture
When discussing digitization, conversations about the security of the digital landscape of Indonesia come to mind. The Center of Indonesian Policy Studies in 2019 reported a substantial rise in phishing, malware, and ransomware attacks in Indonesia during the COVID-19 pandemic, coinciding with the swift expansion of e-commerce and fintech.
Phishing and malware are some examples of how cybercriminals can steal and access your digital data, including your digital identity. When put in the wrong hands, cybercriminals can use this data to commit a whole range of cyber crimes, such as identity theft and various types of fraudulent activities that can be disastrous for businesses, individuals, and the country.
The Role of E-KYC with Biometric Verification in Strengthening Your Defense
One solution to the looming threat of cybercrime is investing in a powerfully built cyber security system. This is especially crucial for e-commerce and fintech companies. If a data breach occurs, e-commerce and fintech could be lucrative channels for cyber criminals to infiltrate with stolen identities.
EKYC with Biometric Verification is an identity verification system that can be used as a shield to protect your business from cybercriminals creating or accessing accounts with stolen data. E-KYC with Biometric Verification consists of three main features:
- ID Verification
- Biometric Verification
- Liveness Detection
These features are compatible with digital-based businesses such as e-commerce and fintech, as they enable a swift verification process within seconds with accurate results.
Cybersecurity, A Crucial Element of Digitization
ASLI RI offers robust cybersecurity solutions to empower business. With the growing prominence of e-commerce and fintech, the risk of cybercrime is on the rise. In this challenging landscape, taking proactive steps to shield your business from cyber threats is of paramount importance.Our state-of-the-art identity verification systems provide a formidable defense, ensuring that your business actively contributes to safeguarding customer data against cybercriminals. Visit www.asliri.id to explore our range of products and bolster your cybersecurity efforts.
cyber threats cybersecurity E-KYC with Biometric Verification Ecommerce fintech identity forgery Identity theft
Last modified: January 9, 2024
