Nat’l ID system to boost BSP’s financial inclusion bid

National, News

Aside from providing a foundational ID system, the national identification (ID) program will also ensure that all Filipinos will be included in the financial system.

This was stressed by managing director of Bangko Sentral ng Pilipinas (BSP) Financial Technology Sub-Sector managing director Vicente de Villa III stressed this point at the recent three-day Chamber of Thrift Banks (CTB) virtual convention.

De Villa said the national ID is not restrictive in terms of limiting people’s access from cash to digital transactions, which the central bank is pushing.

“It’s actually opening it up for others. There are those who are not yet included in the financial system because they do not have any form of valid identification, which that national ID will provide.” he said.

The government has started this month the registration of the initial nine million Filipinos under the Philippine Identification System (PhilSys). The project targets to provide national IDs to about 92 million Filipinos by end-June 2022.

De Villa said the national ID program supports the central bank’s bid to increase financial inclusion for Filipinos many of whom were previously excluded from the formal financial system. The central bank he said targets to have around 70% of adult Filipinos part of the financial system by 2023.

  The BSP earlier said opening of basic deposit accounts rose significantly after the government implemented the enhanced community quarantine (ECQ) from mid-March to end-April in Luzon. The ECQ was extended until end-May in Metro Manila.

The hike was attributed to the need for people, especially those who are beneficiaries of the social amelioration program (SAP) and other forms of government subsidy, to have deposit accounts.

Leave a Reply