Southeast Asia’s digital transformation is accelerating, with millions gaining access to online financial services. However, this rapid growth has also made the country a hotspot for identity fraud, making reliable identity verification and fraud prevention more critical than ever. To address this challenge, 1datapipe™ is launching its Living Identity™ solution in the region, starting with Indonesia. This will provide financial institutions, fintechs, and digital platforms with access to structured, real-world verified identity data. This initiative is set to redefine fraud detection, improve customer onboarding, and unlock new financial opportunities for underbanked communities.
The Tech for Good Institute (TFGI) published The Platform Economy: Southeast Asia’s Digital Growth Catalyst, which surveyed the state of the digital platform economy across SEA-6 countries: the Philippines, Malaysia, Indonesia, Vietnam, Singapore, and Thailand. Digital financial services (DFS) were found to be integral components of the platform economy, with the potential to address the challenge of financial inclusion in this region.(Source)
Informal workers, estimated to account for over 70% of the Southeast Asia workforce, remain financially under-served. Many lack bank accounts, are in debt, and transact predominantly in cash, making it difficult to build a credit history that would give them access to formal financial tools. (Source).
Solving Indonesia’s Identity Fraud Challenge
The rise of digital banking, BNPL (Buy Now, Pay Later) services, and fintech lending has exposed Indonesia to increasing fraud risks, particularly synthetic identity fraud and impersonation scams. Fraudsters exploit KTP (national ID) forgery, account takeovers, and weak identity verification systems to gain unauthorized access to financial services. Reports show that fraudulent loan applications surged by over 50% in the past year, leading to substantial financial losses for banks and fintechs.
Despite widespread digital adoption, many businesses still rely on outdated, siloed identity databases that fail to detect sophisticated fraud attempts. The result? Higher default rates, increased operational costs, and an erosion of trust in digital finance.
“Indonesia’s digital economy is booming, but fraud risks are growing just as fast. The industry needs a new approach to identity intelligence—one that goes beyond basic KTP validation to provide real-world, structured identity insights,” said Carey Anderson, CEO of 1datapipe™.
“With our Living Identity™ solution, we’re enabling banks and fintechs to make more confident lending decisions, fight fraud proactively, and support financial inclusion across the country.”
Living Identity™: A Smarter Approach to Identity Verification
Rather than relying on static, outdated databases, 1datapipe™’s Living Identity™ solution continuously updates and structures identity data, ensuring accuracy and reliability. This real-time approach provides businesses with the tools to accurately verify identities to reduce fraud in lending, BNPL, and e-wallet services, strengthen KYC (Know Your Customer) and AML (Anti-Money Laundering) compliance, improve fraud detection while reducing false positives and enhance customer risk profiling for more responsible credit decision-making.
“For too long, Indonesian businesses have struggled with fragmented, low-quality identity data. Our approach is different—we provide structured, verified identity intelligence that powers AI-driven risk models, enabling financial institutions to reduce fraud and improve financial accessibility,” Anderson added.
Regulatory Readiness & Market Adaptation
As Indonesia strengthens its regulatory framework, businesses must stay ahead of evolving compliance requirements from Otoritas Jasa Keuangan (OJK), Bank Indonesia (BI), and the new Personal Data Protection Law (PDP Law). 1datapipe™ ensures that its identity intelligence solutions align with these regulations, offering financial institutions a secure, privacy-compliant approach to fraud prevention.
Expanding Financial Inclusion & Digital Trust in Indonesia
With millions of Indonesians still unbanked or underbanked, financial inclusion remains a key priority. By integrating AI-powered identity intelligence, 1datapipe™ is helping businesses reach underserved populations while mitigating fraud risks.
“Indonesia’s digital economy cannot thrive without trust. Financial institutions must not only expand access but also ensure security at every level. Fraud prevention and financial inclusion should go hand in hand—not compete. With our advanced identity intelligence, we’re making that possible, ensuring that businesses can grow confidently while protecting consumers from evolving fraud threats,” Anderson concluded.
About 1datapipe™
1datapipe™ is a global leader in high-fidelity data solutions, specializing in identity intelligence, fraud prevention, risk assessment, and AI-driven customer insights in high-growth markets. Through its proprietary Living Identity™ solution, 1datapipe™ empowers financial institutions, fintechs, and digital platforms with structured data for fraud prevention, customer intelligence, hyper-personalized marketing, and seamless onboarding—ensuring compliance, accuracy, and innovation in Indonesia’s digital economy.
