Jakarta, 28 April 2026 – The use of Artificial Intelligence (AI) in Indonesia’s financial services sector continues to grow rapidly and has become a key driver of innovation. From alternative credit scoring and customer service automation to more seamless Electronic Know Your Customer (e-KYC) processes, AI has created significant opportunities to expand financial inclusion.
However, alongside this acceleration of innovation, new risks have emerged that require serious attention particularly identity manipulation threats enabled by generative AI, such as deepfakes and synthetic identities.
In response to these developments, the Indonesian Fintech Association (AFTECH), in collaboration with Advance AI, organized a workshop titled “AI, Risk, and Regulation in Financial Services: Navigating Deepfake Challenges in Indonesia’s Digital Economy.” This event served as a strategic forum to bring together regulators, industry players, and technology providers to discuss challenges and solutions related to the use of AI in the financial sector.
The advancement of generative AI has significantly transformed the landscape of cybercrime. Identity manipulation techniques such as identity spoofing and synthetic identity are becoming increasingly sophisticated, even capable of bypassing liveness detection systems that were previously considered reliable.
This situation places Financial Sector Technology Innovation Providers (ITSK) and digital banks at heightened operational and reputational risk. Therefore, a more comprehensive approach is needed to manage risks while maintaining user trust.
From a regulatory perspective, the Financial Services Authority (OJK) has demonstrated strong attention to AI governance in the financial sector. Through both the Digital Banking Department and the Department of Financial Sector Technology Innovation, Digital Financial Assets, and Crypto Assets (IAKD), OJK emphasizes the importance of balancing innovation with risk mitigation.
Industry players are not only expected to adopt cutting edge technologies, but also to ensure that system security, reliability, and consumer data protection remain top priorities. These principles serve as the foundation for building a credible and sustainable digital financial ecosystem.
This workshop aimed to enhance industry understanding of the evolving deepfake threat landscape, including potential vulnerabilities in digital onboarding processes such as e-KYC.
In addition, the event featured live demonstrations of anti spoofing technology and advanced liveness detection solutions by Advance AI. These solutions demonstrated how identity manipulation can be detected in real time without compromising user experience, while strengthening proactive security systems.
The discussion also covered comparisons between rule based and AI-driven approaches to risk mitigation, as well as how such technologies can be effectively integrated into digital financial service architectures.
Beyond serving as a discussion forum, the event provided a platform for collaboration among practitioners from various financial institutions, particularly in the areas of compliance, risk management, and technology. The exchange of best practices and experiences is expected to accelerate the adoption of adaptive and relevant solutions.
A key takeaway from the discussion was the importance of synergy among regulators, industry players, and technology providers in building an ecosystem that is not only innovative but also resilient to evolving risks.
As AI adoption in the financial sector continues to increase, an integrated approach that balances innovation and security has become increasingly critical.
Through initiatives like this, AFTECH, together with its stakeholders, continues to promote the development of a digital financial ecosystem that not only drives growth, but also maintains trust, protects users, and ensures long-term sustainability.
