Digital national ID to boost lending, financial inclusion

July 08, 2024

Digital national ID promotes financial inclusion.

The Digital National ID system will increase bank lending activities and promote financial inclusion as it gives access to Filipinos and resident aliens to open accounts and perform various bank-related transactions, said Asia United Bank (AUB).

Digital national ID to boost lending, financial inclusion
Image by Mohamed Hassan from Pixabay

Digital national ID to boost lending, financial inclusion


AUB is one of the early adopters of the Digital National ID system after getting accredited by the Philippine Statistics Authority (PSA) as a “Relying Party.” In a January 31, 2024 letter to AUB, Assistant National Statistician Emily R. Pagador of the PSA’s Use Case Development and Management Service said AUB has “satisfactorily passed regulatory onboarding, having met all the requirements relative to the application to integrate with the Philippine Identification System (PhilSys) and utilize the PhilSys API-enabled Authentication Services.”

As banks can leverage the use of the Digital National ID for electronic Know Your Customer (e-KYC) which is used to securely verify the identity of its customers, “we expect faster account opening and KYC compliance, reduced paperwork, improved loan application and approval processes, and enhanced security for financial transactions with the use of the two-factor authentication using the National ID,” said AUB Executive Vice President and Chief Transformation Officer Jacob C. Ng, who also oversees AUB's branch banking business.

“This will also enable AUB to fulfill its commitment and support the Bangko Sentral ng Pilipinas’ thrust towards strengthening financial inclusion in the country,” he added.

The PSA, in partnership with the Department of Information and Communications Technology, launched the National ID along with authentication platforms, National ID eVerify, and National ID Check, last June 10 at the PSA Headquarters at East Avenue in Diliman, Quezon City. Mr. Ng and Chief Compliance Officer Laidy Claire C. Dela Rosa represented AUB.

Those registered with the National ID system can access and view their Digital National ID via https://national-id.gov.ph or download the eGovPH app, which requires input of demographic information and facial verification to confirm the individual’s identity.

The PSA and DICT also developed the National ID eVerify (https://everify.gov.ph) to aid government agencies and private establishments in authenticating a person’s registration with the National ID System. “The platform offers a trusted solution to enhance security and streamline the onboarding process to the National ID system of relying parties especially for government agencies, which are priority institutions of the PSA and the DICT,” the PSA said in a statement.

For security and efficient identity verification, the National ID eVerify features advanced facial recognition technology for real-time matching of an individual’s face, among other registered information, with the National ID registry. It also has a feature called the National ID Check to verify the authenticity of any format of the National ID, including the Digital National ID, by scanning the QR code feature. It is also accessible via National ID eVerify (https://everify.gov.ph/check).

“We take pride in being one of the early adopters of the National ID system, as this pioneering initiative supports AUB’s aspiration to become the Digital Partner of Choice, advocating for open collaboration and helping others share in our success and responsibility to deliver financial inclusion,” said AUB President Manuel A. Gomez.

Through its digital partnerships, AUB has been enabling merchants to accept digital payments from their customers using its all-in-one digital payment acceptance product AUB PayMate and revolutionizing cross-border digital payments through its HelloMoney e-wallet, among others.

Local and regional digital payment enablers such as Alipay+, the Liquid Group, and Hana Bank of Korea’s GLN International have chosen to partner with AUB because of the Bank’s impressive track record in this space.

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