Why Protecting Personal Data is a Big Deal for Fintechs
Authors
Indonesia’s fintech scene is booming—from tap-and-go payments to peer‑to‑peer lending, crowdfunding, retail investing, remittances, and yes, even crypto. The financial regulators (OJK and Bank Indonesia) have rolled out new rules to keep up with all this innovation, making sure everyone plays by the book.
At the heart of every fintech app and service? Your data. Fintechs need to know who you are and often use AI and machine learning to make things slicker. But with great data comes great responsibility. Handling personal information carefully isn’t just about checking a legal box, it’s about building trust and keeping your business strong.
Why Data Protection Isn’t Optional
- It Builds Trust and Wins Loyalty
When you show customers you respect their privacy, they feel safe sharing their info, and they keep coming back. - It’s the Law
OJK’s and BI’s new consumer‑protection rules are clear: mishandle data, and you could face hefty fines or worse. - It Lowers the Risk of Costly Breaches
No system is foolproof, but solid data‑protection practices greatly reduce the chance of hacks that could drain your wallet and damage your reputation. - It Keeps AI in Check
AI can personalize experiences, but without proper guardrails, it can profile people unfairly or misuse sensitive details.
How to Get Data Protection Right
Think of data protection as the foundation of your fintech growth. Here’s a simple roadmap:
- Map Your Data
List out exactly what personal information you collect (IDs, bank details, user behavior, etc.), why you need it, and with whom you share it. - Ask for Consent the Right Way
Use clear, plain‑language consent forms (in Indonesian) that explain exactly what you’ll do with someone’s data. No legalese allowed. - Set Clear Internal Rules
Write down who can access data, where it’s stored, how long you keep it, and when it’s deleted. Documented policies show regulators you’re on top of things. - Appoint a Data Protection Officer (DPO)
The PDP Law requires it. Your DPO will steer your data‑protection efforts and act as the go‑to person for compliance questions. - Build Privacy In from Day One
Whenever you design a new feature or service, especially anything involving AI, make privacy considerations part of the blueprint. - Lock Down Your Systems
Implement encryption, strong access controls, and an incident‑response plan so you know exactly what to do if something goes wrong. - Train Your Team
Make sure every employee understands your data‑protection policies. Regular workshops and refresher courses keep everyone on the same page.
Bottom line: Personal data protection isn’t just a legal checkbox for fintech companies—it’s the key to earning customer trust, avoiding nasty fines, and setting yourself up for sustainable growth. Start early, keep it simple, and make data safety part of your company’s DNA.
How We Can Help You
- Be Your DPO
We step in as your dedicated Data Protection Officer, handling all the compliance tasks so you don’t have to. - Spot Gaps & Plan for Incidents
We’ll review your current setup, flag any privacy holes, and put together a straightforward incident‑response plan. - Train Your Employees
We deliver easy‑to‑follow training and workshops so every team member knows how to handle data safely and confidently. - Keep You Fully Compliant
We make sure your policies, consent forms, and processes meet Indonesia’s PDP rules—so you stay on the right side of the law.
Disclaimer:
This client update is the property of ARMA Law and intended for providing general information and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. ARMA Law has no intention to provide a specific legal advice with regard to this client update.
Related Updates
Latest Updates
