DIGITAL BANK LEGAL CHALLENGES: SECURITY PROTECTION AND LEAKAGE OF CUSTOMER PERSONAL DATA

Abstract

Technology   and   digitalization   are   growing   and affecting various economic and industrial fields, one of   which   is   banking   industry.   The   presence   of technology and the phenomenon of digitalization has directed  this  industry  to  a  digital  transformation process through digital banking. Digital banking was developed  to  serve  customers  faster,  easier,  and  in accordance with customer experience, itcan be done completely  independently  by  customers  while  still paying    attention    to    security    aspects    through optimizing  digital  technology  systems.  The  presence of    lifestyle    integration,    automation    in    banking services is an important aspect that needs attention. Security and customer trust are important for banks, socustomers  trust  banks  as  a  one-stop  service  for their financial needs. However, the problem faced in the digital banking era is how fardigital banking can be   done   by   improving   the   quality   of   service   to customers    while    paying    attention    and    without compromising transaction security. In addition, there are  cyber  security  issues  related  to  consumer  data protection,   which   until   now   do   not   have   special regulations to provide legal certainty. The urgency of consumer protection for digital banking services will be  assessed  using  legal  research  methods  with  a doctrinal    approach    contained    in    primary    and secondary  legal  materials.  The  purpose  of  this  study is to examine and analyze the developments and legal challenges of digital banking consumer protection in Indonesia. Basically digital banking in Indonesia has regulations but only limited to two things, namely digital banking services and regulations regarding the legal status of the existence of digital banks in Indonesia. For digital banking services, it is regulated in POJK No.12/ POJK.03/2018. Meanwhile, the legal status of the existence of digital banks in Indonesia is regulated in POJK No.12/POJK.03/2021. The challenge of implementing digital banking includes 6 (six) aspects, one of which is customer protection of personal data and the risk of data leakage that does not yet have specific regulations governing it. The principle of effective customer protection in banking law is for common goals and can be implemented, so that each banks can serve and protect customers better without harming other parties.