DICT supports National ID integration across financial institutions

The Department of Information and Communications Technology (DICT) is backing the wider use of the National ID for customer verification across financial institutions, as the Bangko Sentral ng Pilipinas (BSP) moves to require its supervised institutions to connect with the Philippine Statistics Authority’s (PSA) National ID authentication system.

DICT Secretary Henry Aguda said in a radio interview that closer integration between the National ID infrastructure and financial institutions could help authorities distinguish legitimate lenders from questionable operators while making identity verification more reliable.

Aguda said the DICT has been working with the BSP and financial institutions, including LandBank, BPI, and the Bankers Association of the Philippines (BAP), on the use of the National ID for verification.

“Ang sabi namin para mabawasan ‘yan kailangan i-require mo lahat na national ID na,” Aguda said in an interview.

He said legitimate financial institutions using the National ID for verification could also be easier for regulators to validate against their respective licenses.

“Kapag ‘yan ay legit at gumagamit ng national ID for their verification, eh madali na po nating ma-supervise ‘yan,” Aguda said.

“Malalaman namin kung ang isang institusyon ay kumukuha ng mga e-verify sa amin, then ma-cross check namin sa BSP, may lending license ba ‘yan? Or sa SEC, may lending license ba ‘yan?” he added.

His remarks come as the BSP released a draft memorandum titled “Integration with the National ID Authentication Services (NIDAS)”, which proposes mandatory National ID System integration for covered BSP-supervised institutions or BSIs.

Under the draft memorandum, covered institutions would be required to onboard with NIDAS through National ID eVerify and complete the application and onboarding requirements prescribed by the PSA.

“BSIs shall integrate with the National ID System by onboarding with NIDAS through National ID eVerify (https://everify.gov.ph/) and submitting the complete application and onboarding requirements prescribed by PSA for relying parties (RPs) within the target integration timelines provided in this Memorandum,” the draft stated.

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BSP draft memo seeks National ID integration across banks, financial firms

The proposal would cover institutions performing customer due diligence, including universal and commercial banks, digital banks, thrift banks, rural and cooperative banks, electronic money issuers, virtual asset service providers, and other covered BSP-supervised entities.

Once integrated, financial institutions would be expected to incorporate NIDAS authentication at a minimum into customer onboarding and account opening, as well as risk-based updating of customer information.

While institutions are completing their NIDAS integration, the BSP draft also requires the use of National ID Check to verify National IDs presented by customers.

Aguda said the system could strengthen the know-your-customer or KYC process by allowing institutions to verify whether the person applying for a financial service matches the identity registered under the National ID system.

“Kasi bago ka pa mapautang dapat magbigay ka ng KYC mo,” Aguda said.

The National ID infrastructure is administered by the PSA, while the DICT provides technological support for its digital services. The two agencies jointly launched the Digital National ID, National ID eVerify, and National ID Check in 2024.

National ID eVerify enables relying parties to authenticate an individual against the National ID registry, while National ID Check allows organizations and individuals to verify the authenticity of National ID credentials.

The Digital National ID is also available through the DICT-developed eGovPH platform, extending the government’s digital identity infrastructure to smartphones and online government services.

Under the BSP proposal, implementation would be phased.

Universal and commercial banks with retail banking operations, digital banks, electronic money issuers, and virtual asset service providers would be covered by the first phase and would have three months from the issuance of the final memorandum to submit their NIDAS onboarding requirements.

Other covered institutions, including thrift banks and rural and cooperative banks, would be given six months.

The BSP also allows institutions to use other acceptable identification and verification methods when a customer does not present a National ID or when NIDAS is unavailable.

The policy remains a draft memorandum, meaning the proposed integration requirement and implementation timelines are not yet final until formally issued by the BSP.