A financial technology (fintech) group supported the government’s initiative to launch the Philippine Identification System ID (PhilSys), commonly known as the national ID system, as it is “very timely” amid the global health crisis.
But how is it relevant and applicable to fintech?
The financial inclusion partner of PhilSys, FintechAlliance.ph said that the move will pave the way for low-income families to have easier access to basic banking services, which “ensures accuracy, transparency, and efficiency of the delivery of aid and facilitating access to more job opportunities among others.”
PhilSys provides an official national identity card for Filipino citizens worldwide and foreign permanent residents in the Philippines, serving as an all-for-one identity card that combines those issued by the Social Security System (SSS), Government Service Insurance System (GSIS), PhilHealth, and Pag-IBIG, among others.
Having a national ID will facilitate all kinds of finance- and government-related services. These include the distribution and reception of financial aid, the conduct of government-to-government transactions, the opening of bank accounts and investments, e-wallet registration, and the creation of insurance plans.
FintechAlliance.ph predicts that PhilSys will cover 52 million unbanked Filipinos in the country, citing that it will be instrumental in the country’s shift toward a digitally-driven economy.