Updated Framework on Commercial Bank Digital Services Finally Introduced: Two-Factor Authentication Verifications Now Mandatory

In 2018, the Financial Services Authority (Otoritas Jasa Keuangan– “ OJK ”) introduced various prerequisites and mandates regarding digital services, as provided by commercial banks (“ Banks ”) through the issuance of Regulation No. 12/POJK.03/2018 on the Organization of Digital Banking Services by Commercial Banks (“ Regulation 12/2018 ”). [1] However, as Banks’ digitally-based services (“ Digital Services ”) continue to develop in line with information technology (“ IT ”), the OJK has now decided to adjust various aspects that relate to the organization of said Digital Services through the issuance of Regulation No. 21 of 2023 on the Digital Services of Commercial Banks (“ Regulation 21/2023 ”), which has been in force since 22 December 2023. [2]