eKTP

eKTP, also known as electronic Know Your Customer, is a digital process used by businesses to verify the identity of their customers. It aims to streamline and enhance the traditional Know Your Customer (KYC) procedures, which are often manual and time-consuming. eKTP utilizes technology to collect and verify customer information, reducing the need for physical documentation and in-person interactions. This digital approach typically involves collecting details such as identification documents, facial recognition data, and sometimes even biometric information.

The primary goal of eKTP is to improve efficiency and reduce the costs associated with customer onboarding and ongoing due diligence. By automating many of the verification steps, businesses can onboard new customers faster and more securely. This can lead to a better customer experience, as the process is often more convenient and accessible. Furthermore, eKTP can help businesses comply with regulatory requirements related to anti-money laundering (AML) and counter-terrorism financing (CTF), as it provides a robust and auditable trail of verification.

Various technologies underpin eKTP solutions, including optical character recognition (OCR) for reading documents, artificial intelligence (AI) for facial and biometric analysis, and secure databases for storing verified information. The implementation of eKTP varies across industries, with financial institutions, telecommunication companies, and online service providers being among the most prominent adopters. As digital transformation continues, eKTP is expected to become increasingly prevalent as businesses seek to balance security, compliance, and customer convenience.