Digitalization of Rural Banks & BPRS Become Keys to Support MSME Business Growth and Target Financial Inclusion in 2024
Jakarta, 20 March 2023 - Empowerment and Capital of Medium, Small and Micro Enterprises (MSMEs) is one of the Government's priorities in order to achieve the 2024 financial inclusion target. facilitating community services in the regions, but can also maximize MSME business growth with easier access to financial services. Supporting the government's mission, PT Indonesia Digital Identity (VIDA) confirms its commitment to BPRs in various regions by providing leading digital identity services, such as certified electronic signatures and online identity verification. Not only is it convenient, safe and easy, VIDA's digital identity service has been integrated with the OpenBank+ system which is known to actively encourage the digital transformation of microfinance institutions such as BPR/BPRS in various regions.
The presence of BPRs, Cooperatives, and Microfinance Institutions (LKM) is urgently needed so that banking services can reach more unbanked communities in all regions. The Financial Services Authority (OJK) recorded the development of BPR loans worth IDR 127.9 trillion as of November 2022 and continued to grow from the previous year, which was IDR 115.6 trillion1. In line with the OJK and Government's agenda to push the level of financial inclusion to 90% in 2024, the contribution of BPR/BPRS needs to be continuously encouraged, one of which is through digital transformation. Through this transformation, banking transactions through digital channels (mobile app and internet) including the adoption of digital identity services are also encouraged to improve customer experience.
VIDA Managing Director, Adrian Anwar said "Microfinance institutions such as BPR play a very important role as a source of capital for MSMEs, especially in the regions. We believe that by digitizing, in the future BPR can continue to grow and compete in providing financial services that are not only easily accessible but also guaranteed security. With VIDA, people who wish to apply for BPR capital can immediately carry out the registration process online, anywhere and anytime, because the process of verifying identity and signing contracts with banks is done digitally and also legally."
VIDA continues to innovate and collaborate in providing access to inclusive digital financial services for MSMEs, especially in the regions. Through the integration of VIDA and OpenBank+ technology owned by Mitra Jasa Lima since 2022, VIDA supports improving the quality and acceleration of BPR services throughout Indonesia which are OpenBank+ partners, starting from opening accounts to other financial transactions to be carried out completely digitally. To date, VIDA has helped verify more than 800,000 customers/month to be able to use online financial services, including to access capital. With the support of VIDA technology in the form of digital signatures (VIDA Sign) and online identity verification (VIDA Verify), BPR customers, most of whom are MSME players, can more easily access banking services without having to go to the BPR head office or branches.
In his remarks at the MUNAS Indonesia Microfinance Expert Association (IMFEA) event on 10-11 March 2023 in Semarang, IMFEA Chairman, Ahmad Subagyo stated "The position of BPR/BPRS and LKM/LKMS is very important for the sustainability of MSMEs in Indonesia. In the midst of the ongoing digitization of commercial banks, BPRs, and other microfinance institutions must continue to be able to adapt to keep up with this fast pace. One significant obstacle is the need to increase financial literacy in society. Because of problems like these, we encourage the presence of digital infrastructure that is not only able to meet security levels, but is also practical to use, especially for small and medium-sized economies. That way, there will be trust among customers in utilizing digital systems in administration at BPRs quickly, safely, and easily.
Capitalizing on the synergy experience with OpenBank+, VIDA also sees that BPR services place a strong emphasis on customer trust and are closer to the people in the regions. This is increasingly relevant in the midst of rampant social engineering-based fraud in the digital era, such as identity fraud, which can be detrimental to BPRs. With the 4S (Speed, Scale, Secure, Social Impact) principle, VIDA's digital identity technology can make it easier for BPRs to increase their business scale to support MSMEs in the region. The VIDA digital identity is also easy and convenient for MSME users to use to maximize all their business potential.
Technological sophistication and security has become a global necessity. On the other hand, the convenience and comfort factor is the key so that technology adoption is higher and more inclusive in various levels of society. In the same event, Head of Public Policy and Government Relations VIDA, Muhammad Irwan Setyawan added, "Digital identity from VIDA, both VIDA Sign and VIDA Verify aims to be an inclusive high-tech innovation service. This aims to be able to maximize the benefits for various groups, including industry players, government and society. In line with the Government's agenda, we are optimistic that our services can support digital transformation in Indonesia with our initiative, namely "Grow Tangguh", so that in the end it can help develop MSME businesses and encourage financial inclusion, so that it is No One Left Behind." Close Irwan.
About PT Indonesia Digital Identity (VIDA)
PT Indonesia Digital Identity (VIDA), an electronic certificate provider (PSrE) and Certificate Authority (CA) registered and rooted under the Ministry of Communication and Information Technology of the Republic of Indonesia, is a trusted body that has the authority to issue electronic certificates for certified electronic signature requirements. Founded in 2018, VIDA is a digital identity service provider that utilizes electronic certificates to provide multi-factor authentication, electronic signatures, and verified identity services. VIDA implements world-class data security standards, including public key infrastructure, facial recognition (biometrics), and network security for a comprehensive data security solution.
In addition, VIDA is registered as an organizer of Digital Financial Innovation (IKD) in the eKYC cluster and regulatory sandbox at OJK. Products and solutions offered by VIDA can be adopted by various sectors and industries, including the financial services industry that can verify customers not only more safely because they are based on electronic certificates but also faster because they use biometric verification via a population database for identity verification.
VIDA also implements world-class technology standards, and it is internationally certified and recognized through audits and various accreditations. In Indonesia, the company is the first WebTrust accredited PSrE and is registered as a secure electronic signature service provider and has been approved by Adobe (Adobe Trust Service Provider) on the Adobe Approved Trust List (AATL). It is also ISO 27001 certified for implementing information management security standards.
VIDA - PT Indonesia Digital Identity