More Filipinos are expected to gain access to vital financial services following President Duterte’s order for government and private entities to accept the national identification or PhilID as enough proof of identity, thus enabling clients to make transactions, according to the Bangko Sentral ng Pilipinas (BSP).
Additionally, the impending rollout of a digital version of the PhilID is expected to prompt more Filipinos to adopt and sign up for their national ID.
Executive Order No. 162 series of 2022, which Mr. Duterte signed on Feb. 14, “is supportive of the Duterte administration’s thrust to eliminate red tape in government transactions,” BSP Governor Benjamin Diokno said.
EO 162 specifies that no additional proof of identity or age will be required upon presentation of the PhilID itself or the PhilSys Number (PSN) or even the PhilID card number.
Also, any of these three may be presented in place of a birth certificate for transactions that require individuals to establish their age.
Examples of such transactions are applications for marriage licenses as well as Land Transportation Office student permits and conductor’s licenses; enrollment for kindergarten, first grade and Philippine Educational Placement Test passers; and Professional Regulation Commission and Bar Licensure Examinations.
According to the BSP, the order spelled out in EO 162 will encourage Filipinos—especially the marginalized and those from low-income households with no government-issued IDs—to open bank accounts.
This, in turn, will pave the way for their inclusion into the formal financial system and reduce their vulnerability to loan sharks and similar lending practices.
In October 2021, the BSP issued Memorandum No. M-2021-057, which “reminded” BSP-supervised financial institutions to accept the PhilID, in both physical and mobile formats, as sufficient proof of identity.
The PSA is currently engaging technology partners for the launch of a mobile version of the PhilID as a digital alternative to the physical PhilSys card and the PSA Quick Response Code Verification System. The digital version is expected to promote broader and seamless acceptance of the PhilID by financial institutions for various services.
“The issuance of BSP Memo No. M-2021-057, pursuant to Republic Act No. 11055, or the PhilSys Act, supports the wide scale opening of transaction accounts, particularly the Basic Deposit Account (BDA) that is designed to meet the needs of the unbanked and promote greater financial inclusion,” Diokno said.
BSP data show that as of third quarter 2021, 3.6 million new BDAs were opened since the fourth quarter of 2019. Also, active e-money accounts increased by 16.8 million between yearend 2019 and 2020. INQ