Gatchalian bats for bank accounts for all Filipinos for swift, contactless aid distribution

Senator Sherwin Gatchalian on Sunday broached the idea of providing every Filipino with a bank account to make way for an efficient and prompt delivery of financial assistance from the government in the future.

In a statement, Gatchalian called his proposal "One Filipino, One Bank Account," which he said is similar to the national ID system.

"Dapat mandatory na bigyan ng pamahalaan ang lahat ng mga naninirahan dito ng bank account. Importante na gumamit na tayo ng teknolohiya,” he said.

(It should be mandatory that the government gives all residents of the Philippines a bank account. It is important that we use technology now.)

Gatchalian, who serves as vice chair of the Senate banks committee, said owning a bank account should be considered a basic requirement among Filipinos, regardless of their socio-economic status.

A 2019 financial inclusion survey of the Bangko Sentral ng Pilipinas showed that 51.2 million adult Filipinos remain unbanked, equivalent to 71% of the total adult population in the country.

The topmost reason for not having a bank account is lack of enough money, followed by the perceived lack of need for an account, and the lack of documentary requirements.

The same BSP survey revealed that access to technology has made Filipinos more aware of online payments, with 38% of adults reported owning a smartphone while 42% use the Internet at least once a month.

Of those who use the Internet at least once a month, 86% connect to the Internet via mobile data. The BSP said this access of technology has given awareness to online payment methods.

With over 74 million Filipinos already using smartphones as of 2019, Gatchalian said contactless and cashless payments are already possible by using mobile phone units as digital wallets.

He added that payments can also be made through scanning with the use of applications installed in smartphones.

The national government recently allocated P22 billion for 22.9 million beneficiaries in Metro Manila, Rizal, Bulacan, Cavite and Laguna which was placed under enhanced community quarantine for two weeks.

The government let the local governments decide on whether to give assistance in cash or in kind.

The Department of the Interior and Local Government earlier reported that around P4.47 billion of the cash assistance has already been distributed to Metro Manila beneficiaries. — BM, GMA News