The initial roll-out of the National ID to the provinces will help improve access to banking and financial services for the majority of the Philippine population that does not have bank accounts.
This is according to Union of Local Authorities of the Philippines (ULAP) National President and Quirino Gov. Dax Cua, who on Wednesday emphasized the importance of financial inclusion in efforts to help Filipinos struggling amid the coronavirus disease (COVID-19) pandemic.
“It is imperative for the government to fast-track the roll-out of National IDs to the population in order for more Filipinos to open bank accounts.”
“The fastest and safest way to get financial aid is via the banking system, but if 71% of the adult population do not have bank accounts, the government has no recourse but to distribute financial aid in person,” said Cua.
“That, of course, has its dangers given how contagious COVID-19 is.”
According to a survey conducted by the Bangko Sentral ng Pilipinas (BSP) from February to March 2020, only 29% of adults revealed they had bank accounts.
The number of Filipino adults who are unbanked, per the BSP, is estimated at 51.2 million, out of a total adult population of 72 million.
Cua, who has been working with financial institutions like the Land Bank of the Philippines (LBP) to obtain financial aid for local government units (LGUs) to help them deal with the pandemic, said that it is imperative for the government to fast-track the roll-out of National IDs to the population in order for more Filipinos to open bank accounts.
“Banks require proper identification in order for one to open an account, and the sad reality is that many of our countrymen, especially in the provinces, lack identification documents,” lamented the governor.
“With a National ID, more Filipinos will be able to open bank accounts and have access to financial services like credit, or government aid programs like the SAP (social amelioration program) subsidies given during the lockdowns,” explained Cua.
“Kahit walang pandemya, malaking tulong din ang financial inclusion sa mga sektor tulad ng magsasaka.”
Cua pointed out that “there are loan programs for farmers that can help them become more productive, but these require a bank account where the funds can be deposited.”
“The fastest and safest way to get financial aid is via the banking system, but if 71% of the adult population do not have bank accounts, government has no recourse but to distribute financial aid in person.”
The Department of Interior and Local Government (DILG) recently announced that the pre-registration for the implementation of the country’s National ID system would initially be rolled out in 32 provinces.
The 32 provinces are Ilocos Sur, La Union, Pangasinan, Cagayan, Isabela, Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac, Zambales, Batangas, Cavite, Laguna, Quezon, Rizal, Albay, Camarines Sur, Masbate, Antique, Capiz, Iloilo, Negros Occidental, Bohol, Cebu, Negros Oriental, Leyte, Compostela Valley, Davao Del Norte, Davao Del Sur, Davao Occidental, and Tawi-Tawi.
Cua stressed that “it is a sensible move for the DILG to prioritize the provinces, not just because it is safer, but because the bulk of the population without proper identification and without access to financial services like banks reside in the provinces.”
“Dito sa countryside, sa far-flung areas mas kailangan ang National ID, kaya sana ito pa rin ang i-prioritize ng DILG in the months to come.”