MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) on Tuesday reminded financial institutions that the Philippine Identification System (PhilSys) or national ID is considered sufficient proof of identity to open a bank account.
In a statement, the BSP said the BSP-Supervised Financial Institutions (BSFI) should accept the national ID card, in both physical and mobile formats, as sufficient proof of identity without the need for another ID.
The central bank’s call is in support of the Memorandum No. M-2021-057 issued by the Philippine Statistics Authority (PSA), which reminds all government and private entities to accept the PhilID card as sufficient proof of identity, subject to proper authentication. This is in line with Republic Act No. 11055 or the PhilSys Act.
“PhilSys will help more Filipinos, especially the marginalized and low-income, to begin saving money in banks and other BSFIs,” said BSP Governor Benjamin Diokno.
Diokno added that the national ID system will support the wide scale opening of transaction accounts, particularly the Basic Deposit Account, which is designed to meet the needs of the unbanked.
The PhilSys will offer online and offline methods for identity authentication through the PhilID physical security features, QR code digital verification, biometric verification, and SMS one-time password (OTP).
These features will facilitate stronger and more secure methods of identity verification than traditional methods such as manual matching of handwritten signature against specimen.
The BSP likewise directed BSFIs to include the PhilID in their list of valid IDs.
“As a foundational digital ID system, the BSP considers the PhilSys as a gamechanger for financial inclusion, a state wherein there is effective access to a wide range of financial services for all,” it said.
“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,” it added.
As of October 21, 2021, the number of transaction accounts opened due to the co-location of PSA registration sites and Land Bank account opening facilities totaled 5,922,304 accounts, the BSP said.