Not an ID card, it turns out that this is the data that Fintech is fighting for

Jakarta, CNBC Indonesia – For technology companies from startup until unicorn, data is the most valuable asset. However, from the myriad of data collected by them, what data are they targeting?

One industry that relies heavily on data is financial technology companies or financial technology companies fintech. Whatever their business model, starting from peer-to-peer lending, pay later, crypto exchanges, to digital banks, fintech need data in their daily operations.

Not just to ensure the success of their business. Company fintech also required to have the most complete and accurate data by the financial sector regulator.

Business Development Director Advance.ai Ronald Molenaar explained that the company fintech use data for process know-your-customer digitally. Unlike conventional models, the company fintech encouraged to use alternative methods and data to ascertain the identity of potential users.

most basic, fintech Of course, it requires the data listed on the identity card issued by the state such as an ID card, driver’s license, or passport. However, they use a remote method to verify, usually by asking the user to show it to the phone’s camera.

It’s just that data from ID cards is not very reliable, especially address data, even though fintech really need this one data to manage risk. Address use, for example at worst risk, for billing by mail or in person.

This reason, Molenaar explained, necessitated fintech have the address data as accurate as possible. Now, he continued, the company that has the most accurate address data is the company e-commerce such as Tokopedia and Shopee.

The address data on the ID card is usually no longer the owner’s domicile. Address data belongs to e-commerce must be accurate, because users certainly don’t want the items they buy online online got into the wrong hands. “Therefore, now Toko Score, their data is most sought after,” Molenaar, Wednesday (29/6/2022).

However, it must be emphasized that fintech can’t directly access company data e-commerce, but can only verify data that users submit to them with data held by other entities, including companies e-commerce.

Advance.ai is a company owned by Advance Intelligence, startup funded by the SoftBank Vision Fund, Warburg Pincus, and Northstar. Lastly, the company which is also the parent company pay later This Atome, received series D funding worth US$400 million which increased its valuation to US$2 billion.

[Gambas:Video CNBC]