E-KYC & DIGITAL IDENTITY VERIFICATION
e-KYC for Fintech: Fast Customer Onboarding, Legally Valid, Fully Compliant
Tilaka delivers e-KYC and digital identity verification for fintech and P2P lending — from population-database checks and liveness detection to certified electronic signatures issued by a government-recognized Certificate Authority (PSrE). Your customers finish onboarding in minutes while your company stays on the right side of regulation.
For fintech lenders, P2P lending platforms (LPBBTI), and other digital financial services in Indonesia, knowing your customer is far more than a formality. Anti-money-laundering regulation in the financial services sector — notably OJK Regulation (POJK) No. 8 of 2023 on AML, counter-terrorism-financing, and counter-proliferation-financing programs — requires providers to identify and verify prospective customers before a business relationship begins. At the same time, user expectations keep rising: a slow or convoluted sign-up flow means prospective customers simply abandon the process.
This is where e-KYC (electronic Know Your Customer) becomes a competitive differentiator. With e-KYC, identity verification happens entirely digitally: national ID (e-KTP) data is matched against the civil registry through an official cooperation channel with the Directorate General of Population and Civil Registration (Dukcapil), the customer's face is verified with biometric recognition and liveness detection, and the customer signs agreements electronically. A process that used to take days of face-to-face meetings can now be completed in a single short session from the customer's phone.
Good e-KYC, however, is not just about speed. It must produce identities and consents that hold up legally — and this is where a certified Certificate Authority (PSrE) matters. Through electronic certificates issued by a PSrE, a customer's electronic signature satisfies the requirements of Indonesia's Electronic Information and Transactions Law (UU ITE) and Government Regulation 71/2019, while the personal data processed during verification must comply with Law No. 27 of 2022 on Personal Data Protection. Tilaka combines all three — speed, legal validity, and data protection — in one e-KYC platform built for fintech.
Customer Onboarding Challenges in Fintech and P2P Lending
High drop-off during registration
Lengthy manual verification — repeated document uploads, multi-day review queues — makes prospective customers abandon the app before their account is active. Every point of friction at onboarding is lost revenue.
Fake identities and fraud risk
Forged ID cards, manipulated photos, and presentation attacks (such as a photo shown on another screen) can slip through when verification relies on visual inspection alone. A fictitious identity at onboarding turns into defaults and account takeover later.
Digital agreements with weak evidentiary value
A consent checkbox or a pasted signature image without an electronic certificate is hard to link to the signer when a dispute or default occurs. For funding agreements, evidentiary strength is essential.
An ever-growing compliance burden
Providers must satisfy AML/CFT obligations, OJK's P2P lending rules, and the Personal Data Protection Law when processing customers' biometric data. Building and auditing all of this in-house drains engineering and compliance resources.
Tilaka's e-KYC Solution for Fintech
Official population-database verification
Prospective customers' identity data is verified against the Dukcapil civil registry through an official cooperation channel, ensuring the national ID number (NIK), name, and ID data are genuinely valid — not merely read off a photo of the document.
Facial biometrics with liveness detection
Facial recognition matches the customer's selfie against reference data, backed by liveness detection to defeat presentation attacks such as printed photos, on-screen images, or replayed videos.
Electronic certificates from a certified PSrE
Every verified customer can immediately be issued an electronic certificate by Tilaka as a government-recognized certified PSrE, forming the basis of certified electronic signatures under UU ITE and Government Regulation 71/2019.
Electronic signatures for funding agreements
Funding agreements, declarations, and consent documents are signed electronically within the same flow as onboarding — complete with an audit trail that strengthens the provider's evidentiary position.
API integration into your application
All e-KYC and electronic signature capabilities are available via API and SDK, embedding seamlessly into your fintech mobile or web app without redirecting customers to another application.
The Tilaka platform is used by financial services providers and companies in regulated industries across Indonesia for digital onboarding and electronic document signing.
How Tilaka's e-KYC Works
Identity data capture
The customer photographs their e-KTP inside your app. OCR technology extracts the NIK and identity data automatically, so customers never retype information and input errors are reduced.
Dukcapil and biometric verification
Identity data is checked against the civil registry, then the customer takes a selfie with liveness detection. Face matching confirms that the person registering is the genuine owner of the identity and is physically present.
Electronic certificate issuance
Once the identity is verified, an electronic certificate is issued in the customer's name by Tilaka as a certified PSrE. This certificate is what binds the customer's identity to their electronic signature.
Agreement signing and account activation
The customer electronically signs the service or funding agreement. The account goes live, documents are stored with an audit trail, and your team receives structured verification results for compliance purposes.
Frequently Asked Questions
What is e-KYC and how does it differ from conventional KYC?
e-KYC is a fully electronic know-your-customer process — reading the identity document, verifying it against the civil registry, and matching the customer's face biometrically. Unlike conventional KYC, which relies on face-to-face meetings and physical document checks, e-KYC can be completed from the customer's own device in minutes, with results that are documented and auditable.
Are electronic signatures on P2P lending agreements legally valid?
Yes. Indonesia's UU ITE recognizes electronic signatures as having lawful legal force and effect provided the statutory requirements are met, and Government Regulation 71/2019 distinguishes certified electronic signatures created with certificates from an Indonesian PSrE. OJK's regulatory framework for P2P lending also provides for funding agreements to be executed as electronic documents with electronic signatures, so using certified electronic signatures strengthens rather than weakens the provider's legal position.
How does e-KYC help with AML/CFT compliance obligations?
POJK 8/2023 requires financial service providers to identify and verify prospective customers as part of customer due diligence. Tilaka's e-KYC performs that verification systematically — civil registry checks, biometric matching, and liveness detection — and produces a structured verification record as evidence that the obligation was carried out. The overall AML/CFT policy remains the provider's responsibility; e-KYC is the technical component that supports it.
How is customers' personal and biometric data protected?
Civil registry and biometric data fall under specific (sensitive) personal data in Law No. 27 of 2022, so processing them demands a lawful basis, purpose limitation, and adequate safeguards. Tilaka's e-KYC flow is designed around those principles: data is processed for the stated verification purpose, transmitted over encrypted channels, and Dukcapil verification is performed through the official cooperation mechanism — not by copying the population database.
How does Tilaka prevent sign-ups using fake identities?
The defense is layered. ID data is verified against the civil registry, so fictitious NIKs or inconsistent data are rejected up front; facial recognition confirms the registrant is the identity's genuine owner; and liveness detection defeats fraud attempts using printed photos, on-screen images, or replayed videos. This combination is far stronger than visual document inspection alone.
How complex is integrating Tilaka's e-KYC into our application?
Tilaka provides APIs and SDKs designed to be embedded directly in your mobile or web application, so customers never leave your app during onboarding. Your team defines the flow touchpoints — ID capture, selfie, signing — and receives structured verification results via API. Tilaka's and DTI's technical teams support you from flow design through go-live.
E-KYC & DIGITAL IDENTITY VERIFICATION
Accelerate Customer Onboarding Without Compromising Compliance
Discuss your fintech's e-KYC and electronic signature needs with the DTI team. We help you design an onboarding flow that is fast for customers, strong on evidentiary value, and aligned with OJK requirements and the Personal Data Protection Law.
