BSP: PhilID valid, sufficient proof of identity

The Bangko Sentral ng Pilipinas (BSP) told banks that the Philippine Identification System (PhilSys) ID is a sufficient proof of identity to open a bank account.

BSP Governor Benjamin Diokno said the national ID system supports the wide scale opening of transaction accounts, particularly the basic deposit account designed to meet the needs of unbanked Filipinos.

“PhilSys will help more Filipinos, especially the marginalized and low-income, to begin saving money in banks and other BSP-supervised financial institutions,” Diokno said.

Latest data showed the low cost, no frills deposit base increased by 20 percent to P4.8 billion in the first quarter from P4 billion in the same period last year as the number of accounts surged by 51 percent to seven million from 4.6 million.

Since the introduction of the basic deposit account framework in 2018 to encourage more Filipinos to open bank accounts, there are now 132 banks offering the low cost, no frills deposit account. The account features an initial deposit requirement capped at P100 and simplified identification requirements to open an account. It has no maintaining balance and dormancy charges.

The PhilSys is considered a major infrastructure component in the BSP’s Digital Payments Transformation Roadmap which aims to raise the number of Filipino adults with bank accounts to 70 percent and convert 50 percent of total retail transactions to electronic channels by 2023.

As a foundational digital ID system, the BSP considers PhilSys as a game changer for financial inclusion, a state wherein there is effective access to a wide range of financial services for all.

Aside from contributing to the massive opening of transaction accounts, PhilSys is expected to transform how services are delivered and accessed in the Philippines, accelerating the country’s transition to a digital economy.

The BSP also directed banks to include PhilID in their list of valid IDs to be displayed on counters, public entrances of establishments, websites, social media accounts, and other consumer information channels.

Close to six million accounts have been opened with state-run Land Bank of the Philippines due to the co-location of PSA registration sites.