BSP urges broader use of National ID in banking

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The Bangko Sentral ng Pilipinas (BSP) has called for the expanded use of the Philippine National ID in opening financial accounts, pushing for its full integration into banking and fintech onboarding processes.

Speaking at the “National ID Forum” on July 28 at the BSP Head Office in Manila, BSP Governor Eli M. Remolona Jr. emphasized the transformative role of the ID system in promoting financial inclusion.

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

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

The forum aimed to align government and financial sector efforts to integrate both physical and digital National IDs into Know-Your-Customer (KYC) processes used in banks, e-wallets, and lending platforms.

The BSP recommended wider adoption of the Philippine Statistics Authority’s (PSA) National ID Authentication Services (NIDAS), a system that enables real-time identity verification using biometric and demographic data.

NIDAS supports multiple formats of the National ID—including the printed ePhilID, the plastic card, and the digital ID—providing a flexible identity solution for Filipinos with varying levels of digital access.

Key officials from the BSP, PSA, Department of Information and Communications Technology (DICT), National Privacy Commission (NPC), and the Office of the Special Assistant to the President for Investment and Economic Affairs joined the event.

Representatives from the World Bank, Korea Credit Information Services, and several BSP-supervised financial institutions also shared insights on technical implementation and global best practices.

BSP Deputy Governor Bernadette Romulo-Puyat and Assistant Governors Arifa A. Ala and Redentor C. Bancod highlighted the operational challenges and the regulatory opportunities of using digital identity to simplify financial onboarding.

The forum was themed “Building Trust and Synergy in Digital Identity for an Inclusive and Secure Financial System,” underscoring the BSP’s drive to create a secure yet accessible digital ecosystem.

Currently, financial institutions require multiple IDs or in-person verification to open accounts—barriers that the BSP aims to eliminate through standardized use of the National ID.

According to PSA, over 87 million Filipinos have already registered for the National ID as of June 2025, but usage in financial services remains uneven due to system gaps and institutional hesitance.

The BSP’s push supports the goals of Republic Act No. 11055 or the Philippine Identification System Act, which mandates a unified national identification system for all citizens and resident aliens.

By promoting NIDAS and digital identity integration, the BSP hopes to streamline KYC processes, lower customer acquisition costs, and improve access to financial services across the archipelago.

Officials at the forum pledged continued collaboration to promote secure, privacy-compliant, and interoperable digital identity tools, especially for low-income and underserved communities.