Microfinance, micro-entrepreneurs to gain from national ID system

·2 min read

THE Bangko Sentral ng Pilipinas (BSP) aims to strengthen micro-entrepreneurs and microfinance institutions alike by equipping the public with the national ID system.

Through the Philsys, BSP Gov. Benjamin Diokno said, the national ID will transform how services are delivered and accessed in the Philippines.

“Its online authentication and e-KYC will enable a more seamless digital onboarding, making it easier for clients to open an account,” he said during the 18th Citi Microentrepreneurship Awards Virtual Awarding Ceremony.

BSP records note the rollout of Philsys is in full swing with 11,439,214 registrants completing the collection of both demographic and biometric data process.

Diokno added aside from supporting massive onboarding, PhilSys can also “quicken innovation and effective digitalization of various financial services, including credit and insurance that will reduce the costs of financial transactions.”

BSP said it is also ramping up efforts to promote digital payments and improve credit access of microentrepreneurs.

“We launched the QR Ph P2P in November 2019 to enable digital fund transfers between peers or individual end-users. Drawing on the successful launch and adoption of the QR Ph P2P facility, we launched last April QR Ph P2M. This stream extends the payment use case of QR Ph to enable digital payments between customers and merchants,” Diokno said.

Using QR technology, microentrepreneurs need not invest in costly equipment, such as point of sale terminals, to capture electronic data. Instead, merchants only need to print the QR code that their respective payment service providers will generate for them, display those codes, and obtain payments by simply asking their customers to scan the codes, he added.

The BSP has been pushing for the country’s digital transformation, following the shifting of the financial landscape caused by the Covid-19 pandemic.

It has continued to encourage the country to embrace a digital economy. (JOB)

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