National ID system key to fintech growth

Developing financial technology (fintech) in the Philippines could reach new heights with the passage of a national identification (ID) system into law, said Globe Fintech Innovations Inc. (Mynt) CEO Anthony Thomas.

According to Thomas, a national ID system could help money issuers to properly and accurately identify users and create an easier and more streamlined process for onboarding new customers.

He said that one of the challenges faced by the industry is the proliferation of fake identities. With a national ID, this barrier can be taken down and certain risks can be mitigated as the system would be able to properly identify customers.

“What could help us further is the national identification, which can be a game changer because today, I really don’t know the real identity of my customer. I go by documents, but it’s onerous because I don’t go by a unique number, and it’s very easy to create fake IDs,” Thomas said during the Business Mirror Coffee Club forum on May 11.

Good thing, the Philippine Identification System (PhilSys) bill has been approved by the bicameral conference committee this month.

In line with this, the Philippine Statistics Authority (PSA) has been given a total budget of P2 billion to implement the national ID system through the use of biometrics.

Designed for data integrity and security as well as universal coverage, the national ID is expected to benefit at least 105 million Filipinos.

The Bangko Sentral ng Pilipinas has even given its support for the passage of the national identification bill, which it believes could further drive the digital economy.

With regards to the fintech industry, Thomas said that the national ID provides a “very large” opportunity since seven out of ten Filipinos are still unbanked and uncarded.

The Mynt executive is positive that the national ID will bridge the gap separating customers who have access to formal financial instruments — such as savings, credit, and insurance — and those who do not.

Thomas added that digital payments could scale in the coming years, as mobile dominates the Philippines. Currently, there are 120 million active SIM cards in the country.

via Business Mirror / Lorenz S. Marasigan