Micro, Small and Medium-Scale Enterprises (MSMEs) play an important role in the national economy. They contribute 60% to Indonesia's gross domestic product (GDP) and account for 97% of the workforce. MSMEs are an important element in preventing the loss of livelihoods and economic decline. The Ministry of Cooperatives and SMEs reports that only 3.79% of MSMEs have used online platforms to market their products. Through the synergy of various stakeholders, the number of MSMEs present in the digital ecosystem continues to increase rapidly, reaching more than 19% of the entrepreneurial population.
The government has prioritized the digital transformation of MSMEs through the application of technology. Verification and authentication processes that ensure correct identity and guarantee data authentication will be an important part of MSME digital activities. This can increase trust between customers and business people, and serve as a catalyst to encourage the acceleration of MSMEs to connect with the digital ecosystem.
During the pandemic, many companies have added additional layers of security to support employees to work from home with ease. Several companies have launched remote access solutions with biometrics during the pandemic to support work from home practices. MSMEs are no exception, and are also implementing digital transaction solutions and systems using biometric verification technology that is safer, faster, and more affordable. This is supporting the expansion of digitalization for MSMEs in Indonesia. Digital-identity authentication will encourage more efficient business processes for MSMEs.
Biometrics has also been available to small businesses for more than a decade. Biometric verification can be used to limit who can access the cash vault to control access to the server room.
Literally, biometrics are physical characteristics or human behavior that are completely unique to an individual. These traits include the shape of the face, which is the basis of facial recognition technology that is increasingly being adopted by many companies. Biometrics is used both inside and outside the business world.
User-identity technologies that will be deployed in the near future (by mid-2021) for all users include fingerprint biometrics (44%), voice biometrics (27%) and facial recognition (47%). Research into how quickly technologies that incorporate biometrics will be implemented shows that 16% plan to do so within the next three months and 8.5% within the next year or so.
Biometrics is becoming more commonplace as small businesses continue to adapt to an ever-demanding technology landscape, it's important to understand how you can use biometric authentication in your business. Whether it's verifying payment information or authenticating incoming and outgoing employees for work, biometric applications in small businesses are more diverse than you might think.
Biometric technology has developed rapidly in recent years and is all around us. Most of our daily activities interact with some form of biometric technology. Starting from unlocking the phone, accessing applications, to measuring temperature. In business, biometric verification is used to provide the most secure service for business owners as well as customers.
Currently, the main function of biometric verification is multifactor authentication, since digital identity identification can be done through facial recognition so as to reduce the risk of data forgery and fraud in the digital realm.
VIDA Verify compares biometric and demographic data with national databases using a safe and reliable technology that has been standardized by NIST with an accuracy of more than 99.5%.
VIDA is a digital identity network that utilizes multi-factor authentication, digital signatures and verified identities. VIDA applies world-class data security standards, including Public Key Infrastructure, facial recognition (biometrics), and network security as a comprehensive data security solution.
If your company is able to provide a practical identity verification system such as VIDA Verify, consumers will have a more positive experience. It is this positive experience that can encourage them to re-engage, thereby increasing customer satisfaction and the value of your company. For more information, click here.
Read: Reasons Businesses Need a Reliable Digital Identity System