The Bangko Sentral ng Pilipinas (BSP) looks to give banks greater flexibility in observing the know-your-customer (KYC) rule, this time allowing financial consumers to submit identification documents (IDs) online.
In a recent chance interview, Deputy Governor for the Supervision and Examination Sector Nestor Espenilla Jr. said the Monetary Board (MB) recently approved so-called updates on antimoney laundering, including salient amendments to customer acquisition.
“So, in particular, what I find important and exciting there is [this] would allow flexibility on the online KYC. [This] is actually going to be a major factor that can facilitate the onboarding of new customers, especially unbanked customers, customers in remote areas and customers who don’t necessarily have government IDs,” Espenilla said.
He further said government IDs and other official documents for identity verification will be allowed through electronic photographic images and video-messaging service under certain conditions.
Espenilla said the MB already approved the amendments and should soon be signed by BSP Governor Amando M. Tetangco Jr. anytime soon.
Espenilla expects the new rules and regulations to encourage more financial consumers to reach out to banks and boost the country’s overall banking penetration rate.
Latest data from the National Strategy for Financial Inclusion (NSFI) survey show that while Filipinos exhibit a widespread or 98.3-percent awareness of banks, only about a third, or 31.3 percent, have an account at a formal financial institution, whether this be a regular deposit account or a microdeposit account.
Also, results of the survey show the average length of time to travel to the nearest actual bank branch in the Philippines is 26 minutes.
A two-way trip to the nearest actual bank branch costs an average P52. This cost rises exponentially in poorer and more rural areas of the country.