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The Philippines to Accelerate National ID Program

The National Economic and Development Authority (NEDA) said it is accelerating the implementation of the Philippine Identification System (PhilSys) or the national ID programme to enhance the government’s ability to deliver various social services. NEDA chair said that more than 42 million Filipinos had registered as of September for step 1 or collection of demographic data. Notwithstanding the quarantines, he said nearly 30 million took the second step to supply their biometrics in the registration centres.

OpenGov Asia reported that the National Economic and Development Authority (NEDA) expects the Philippine Statistics Authority (PSA) to register 50 to 70 million people for the national digital ID by the end of the year. It is noted that as of July 2, 37.2 million people had completed Step 1, which involves the collection of demographic information, and 16.2 million had completed Step 2, which involves the capture of biometrics at designated registration centres.

The impact of the Covid-19 pandemic is challenging, but the Philippines has a solid foundation to recover at the right time. Reforms such as Rice Tariffication Law and the National ID are helping us restore our development trajectory and enabling the people, especially the poor, to access affordable food and better social services. 

– NEDA Chairperson

Speaking on the progress being made by the digital ID project, Socioeconomic Planning Secretary at NEDA said: “The COVID-19 crisis underscores the need to provide unhampered access to banking and social services for all Filipinos, especially the poor. Therefore, the President gave the directive to accelerate the implementation of the Philippine Identification System or PhilSys to provide all Filipinos with a unique and digitalised ID.”

He underlined that the Filipinos, particularly the poor, would be able to open bank accounts where cash transfers can be received directly. “We aim to register at least 50 million Filipinos by the end of this year,” he said.

The pandemic gave new promptness and highlighted the primacy of financial integration into government crisis containment and rehabilitation efforts. It showed the vital role of financial inclusion in social welfare and protection, as the transaction accounts became a necessary means to receive government cash support from the poorest and most vulnerable in the country.

As per NEDA’s Chairperson, PhilSys would also facilitate financial inclusion by providing every Filipino with a valid proof of identity, which is required for low-income earners to open bank accounts, receive cash transfers, and access other financial services.

Meanwhile, the Philippines’ state-run bank said it has signed up 5.3 million unbanked PhilSys registrants for their own transaction accounts via account opening booths at select PhilSys co-location areas nationwide. The registrants have already used their prepaid cards for a total of P31.8 million in transactions.

The PhilSys registrants can use the Landbank prepaid cards to manage funds, withdraw cash, perform cashless transactions, shop and pay bills online, and receive government subsidies digitally. As per the president and CEO of the Philippines bank, bringing unbanked Filipinos into the financial mainstream lays the groundwork for inclusive growth, particularly as we accelerate initiatives toward economic recovery and sustained development. Access to formal banking services motivates people to save money, repay loans, invest in financial products, and achieve financial independence.

Unbanked PhilSys registrants may access bank transaction accounts after completing the PhilSys Step 2 registration process, which includes validating supporting documents and capturing biometrics data. PhilSys registrants can also activate their bank prepaid cards and conduct transactions through the bank’s mobile branches, which are located in communities across the country where banking services are disrupted or limited.

The bank’s mobile branch is intended to serve unbanked and underserved communities as well as areas affected by disasters, calamities, and other disruptive events, as part of the bank’s increased efforts to promote greater financial inclusion in the community.

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