Manila: The Department of Social Welfare and Development (DSWD) is set to convene an online 'Virtual Financial Service Providers (FSP) Summit' on Wednesday as part of efforts to shift to digital disbursement the second tranche of the cash relief assistance for public utility vehicle (PUV) drivers. In a social media post on Tuesday, DSWD Secretary Rex Gatchalian explained the rationale behind the planned shift to digital payouts.
According to Philippines News Agency, Secretary Gatchalian highlighted that the first round of payouts for public utility drivers was conducted manually to ensure proper verification and validation of the drivers' identities. This process was necessary because the lists of beneficiaries originated from external sources beyond the DSWD. Gatchalian likened this phase to the 'know your customer' process of banks when opening accounts. For subsequent rounds, digital payouts will be implemented for PUV drivers who possess e-wallets, including those driving transport network vehicle service (TNVS), motorcycle taxis, and delivery services.
The DSWD is inviting all e-money issuers, mobile wallet operators, and financial technology providers to participate in the virtual conference. This initiative is a continuation of the lessons learned from the initial rollout of the cash relief assistance under the DSWD's Assistance to Individuals in Crisis Situations (AICS) program. It reflects the agency's ongoing efforts to enhance service delivery mechanisms for individuals impacted by rising fuel costs due to the ongoing geopolitical conflict in the Middle East.
Assistant Secretary Johannes Paulus Acu±a, the DSWD's Chief Information Officer, emphasized that transitioning to digital systems will reduce administrative and operational costs while providing more accessible and convenient channels for driver-beneficiaries to access funds. Acu±a stated that this shift will lead to more efficient financial payments, allowing more beneficiaries to be promptly served and decreasing the costs associated with manual distribution.
The initiative aligns with existing government policies, including Republic Act Nos. 12254 (E-Governance Act) and 11032 (Ease of Doing Business Act), as well as Commission on Audit Circular 2021-014 on the use of electronic payment systems in government transactions. Acu±a assured that while digital disbursement is being explored, safeguards and verification mechanisms will remain in place to ensure that assistance reaches the rightful beneficiaries.
The DSWD is currently exploring the accreditation of FSPs that can support digital fund disbursement of cash aid, facilitating real-time, account-based transfers to beneficiaries through e-money or mobile wallet platforms. This approach aims to make assistance easily accessible.
The planned summit represents a crucial step in the DSWD's transition toward digital disbursement, reinforcing its commitment to deliver timely, secure, and efficient financial assistance to affected sectors. Interested digital financial service providers can access the DSWD virtual summit via the QR code posted on the official DSWD Facebook page @dswdserves.
