KYC practices in Indonesia and opportunity for implementing e-KYC for accelerating financial inclusion

by Agnes Salyanty, Arshi Aadil, Rahmatika Febrianti, Raunak Kapoor and Sneha Sampath
Jan 12, 2021
1 min

The policy brief proposes recommendations to accelerate the implementation of e-KYC in Indonesia based on our previous report.

Across various developing countries, e-KYC provides multiple benefits over traditional paper-based KYC. Our study in Indonesia shows that the implementation of e-KYC could save the FinTech sector USD 3.9-4.2 billion (IDR 57-61 trillion) and the banking sector close to USD 157-212 million (IDR 2,357–3,123 billion) in the next 10 years. To accelerate financial inclusion and support the needs of a booming digital economy, a low-cost and robust digital infrastructure to verify the identity of an individual is a necessity. This policy brief provides recommendations to accelerate the implementation of e-KYC in Indonesia.