Indonesia stands at a crucial crossroads. The national ambition to achieve 90% financial inclusion by 2024 presents a monumental opportunity.

Yet, with nearly 100 million unbanked adults, the nation has the world's fourth-largest unbanked population. The main challenge is bridging this gap. Digital finance can help, but a serious trust issue may slow down progress.

The way forward needs a change in strategy. We must move from just helping with transactions to creating strong digital trust from the first interaction.

The Digital Boom vs. The Trust Deficit

The potential for a digital revolution is undeniable. With internet penetration near 79% and a booming fintech market projected to hit USD $11 billion by 2033, the infrastructure for growth is in place. Consumers have embraced digital payments, with transaction volumes showing massive year-over-year growth.

However, this rapid adoption has a dark side. Rampant cybercrime is eroding consumer confidence.

In less than a year, financial fraud losses in Indonesia surged to IDR 4.6 trillion (USD $282 million). The impact is personal: one in four (23%) consumers reports losing money to real-time payment scams. This climate of fear creates a harmful cycle. Fraud weakens trust, which slows down the financial inclusion the nation wants.

The Onboarding Bottleneck: The First Point of Failure

The most critical, and often broken, part of the digital customer journey is the onboarding process. This is where digital convenience meets security issues, and many potential customers are lost.

Research from FICO is stark:

• High Abandonment: Almost one in three Indonesians have given up on applying for bank accounts or credit cards. They find the remote identity verification processes too complicated.

• Low Patience Threshold: 57% of consumers will leave an application that has more than 10 questions. Nearly one-third will quit if the process takes over 10 minutes.

This friction is more than an inconvenience; it is a negative form of communication. A slow, cumbersome onboarding process implicitly tells the customer, "Your time isn't valuable, and we don't trust you."

Redefining Personalization: Trust Before a Transaction

True customer engagement cannot be built on a foundation of frustration. For years, "personalization" has been about marketing, tailored offers and relevant ads. But in a high-risk environment like Indonesia, the most meaningful form of personalization is the guarantee of a secure, verified identity.

The onboarding experience is the first, most impactful communication a brand has with a new customer.

• A poor process says: "Our systems are complex. We are inefficient."

• A seamless process says: "We value you. We protect your identity. Welcome."

This positive first "handshake" builds a deposit of trust that is essential for any future relationship. Without it, even the best marketing efforts will be met with skepticism.

The Technology Catalyst: Security That Enables Speed

Solving the conflict between a great customer experience and iron-clad security is a technical challenge. The solution is next-generation biometric onboarding technology that eliminates the need to compromise.

Oz Liveness, for example, provides three critical advantages to onboarding process using face biometrics:

1. Instant Verification: successfully capturing a face in under two seconds, it meets customer expectations for speed and drastically reduces abandonment rates.

2. Flawless Accuracy: With a success rate of over 97% on the first attempt, it minimizes the frustrating retries that cause users to drop off.

3. Unbreachable Security: A 0% False Acceptance Rate (FAR), powered by advanced face liveness detection, ensures that a real person is present. This advanced anti-fraud AI is the main defense against fraudsters. They try to use photos, videos, or deep fakes to open accounts. This AI offers strong protection against complex identity fraud.

This technology uses advanced facial recognition to consolidate security into a single, instant action, a selfie, making the most secure method also the easiest.

Conclusion: Building an Inclusive Future on Trust

To achieve its vision of a fully inclusive digital economy, Indonesia's financial sector must win the trust of millions. This battle is won or lost at the digital front door. By changing their mindset, financial institutions can see identity verification as a smart investment in customer experience. This shift can turn a problem into their biggest advantage.

The future will belong to those who master this first handshake. This handshake creates a secure and personal welcome. It will help build a successful digital Indonesia for everyone.

About Oz Forensics

The journey to a secure and inclusive digital future begins with the right technology partner. Oz Forensics helps leading financial institutions worldwide master the digital handshake with instant, accurate, and unbreachable identity verification.

Learn how our quick 2-second verification and over 97% success rate can improve your customer onboarding. With a 0% False Acceptance Rate, we can help make onboarding your best asset.

Secure your digital front door with Oz Forensics: Speed that converts. Security that lasts.