The opening of transaction accounts with Land Bank of the Philippines (LandBank) by Philippine Identification (PhilID or national ID) card registrants is part of the initiative of the Philippine Statistics Authority (PSA) to realize the objective of financial inclusion.
The Philippine Identification System (PhilSys) Act’s goal is specifically aimed at low-income families who can’t gain access to financial services because of the lack of a bank account.
The most common reason for their exclusion is the lack of a valid ID, the primary requirement in all transactions.
Thus, PSA and LandBank’s partnership pave the way for the low-income sector to finally have a bank transaction account.
PSA reminds in its recurring social media posts that PhilID registrants who will open a LandBank account will not pay any fee. It is also voluntary.
Upon completion of the Step 2 biometrics registration, the Transaction Reference Number and supporting documents may be presented at LandBank kiosks in PhilSys registration centers nationwide.
In its October 27 post, the PSA said over 5 million registrants have already applied for LandBank accounts as of October 14.
The LandBank Mastercard prepaid card will enable account holders to do cash-in, cash-out, and transfer fund transactions at any branch or Agent Banking Partner.
They can also withdraw cash at automated teller machines and Point of Sales terminals, perform cashless transactions, tap payments, shop online, and receive government subsidy digitally.
“Our collaboration with PSA significantly advances our mutual thrust toward greater financial inclusion. Through LandBank accounts, we can reach and provide financial services and government support interventions to as many underserved and unbanked Filipinos nationwide,” LandBank president and chief executive officer Cecilia Borromeo said in a previous statement.
Signed into law by President Rodrigo R. Duterte in August 2018, Republic Act 11055, or the Philippine Identification System Act, aims to establish a single national ID for all Filipinos and resident aliens.
The national ID shall be a valid proof of identity that shall be a means of simplifying public and private transactions, enrollment in schools, and the opening of bank accounts.
It also seeks to boost efficiency, especially in dealing with government services where people will only need to present one ID during transactions.
Source: Philippines News Agency