BSP urges wider National ID use to boost financial access, security

The Bangko Sentral ng Pilipinas (BSP) is pushing for the broader adoption of the National ID system as a key enabler of financial inclusion and secure digital transactions, particularly in the opening of bank and e-wallet accounts.

Speaking during the National ID Forum held on 28 July at the BSP Head Office in Manila, BSP Governor Eli Remolona, Jr. said the system’s growing utility could significantly streamline know-your-customer (KYC) processes across financial institutions.

“The National ID tells a powerful story of inclusion and network effects. The more people we onboard, the more valuable the National ID becomes. As its usefulness grows, so does the social good,” the BSP Governor said.

“We're building a Philippines where your identity is no longer a barrier, but a bridge.”

The forum, themed “Building Trust and Synergy in Digital Identity for an Inclusive and Secure Financial System,” emphasized the integration of both physical and digital National IDs into financial customer onboarding processes. The initiative is part of the BSP’s broader digitalization agenda, which includes promoting open finance and reducing unbanked populations.

One of the key recommendations that emerged from the discussions was the expansion of the Philippine Statistics Authority’s (PSA) National ID Authentication Services (NIDAS). This system allows real-time biometric and demographic verification, supporting plastic cards, printed paper IDs, and digital formats – a feature seen as vital to secure account creation and digital transactions.

The event brought together major stakeholders from the BSP, PSA, Department of Information and Communications Technology (DICT), National Privacy Commission (NPC), the Office of the Special Assistant to the President for Investment and Economic Affairs, the World Bank, Korea Credit Information Services, and representatives from banks, e-wallet firms, and other BSP-supervised institutions.

Also present were BSP Deputy Governor Bernadette Romulo-Puyat and Assistant Governors Arifa Ala and Redentor Bancod, who echoed the call for stronger collaboration between public and private sectors to accelerate digital identity adoption across financial channels.