Citibank Philippines CEO Paul Favila has challenged the government to move beyond piecemeal digitalization, warning that the national ID’s limited acceptance online and persistent paper-based procedures are undermining the country’s digital transformation.
Speaking at the Arangkada Philippines Forum, Favila said government agencies must overhaul not only individual services but also the systems connecting them, allowing citizens and businesses to complete transactions digitally from end to end.
“I’m still frustrated by the fact that despite having a national ID, it is not recognized digitally by any of the portals that we actually interact with,” Favila said.
His remarks underscore a persistent gap between the government’s digitalization ambitions and the practical experience of users who still encounter manual requirements despite the rollout of digital tools.
“The Philippines is still heavy paper-based. And it starts with government. The bureaucracy needs to transform,” he said.
For businesses, the consequences extend beyond inconvenience. Favila said companies must commit substantial capital to digital transformation, but fragmented processes can weaken the return on those investments.
“It takes a lot of investment to digitize. It takes a lot of capital to transform. And you will only invest if you can get to the end point,” he said.
The challenge also extends to the country’s digital infrastructure. Favila disclosed that Citi’s former Philippine consumer banking application was a lighter version of its global offering because local bandwidth and latency fell short of global standards.
He added that connectivity dead spots remain evident even in Bonifacio Global City, a major business district in Metro Manila, highlighting how infrastructure constraints can persist alongside advances in financial technology.
Favila also noted that banks have reduced traditional payment fees to zero, but argued that cheaper transactions alone do not constitute comprehensive digital transformation.
The broader issue, he suggested, is whether government systems, connectivity and business processes can work seamlessly together. Without that integration, isolated digital initiatives risk leaving users caught between online services and the same manual procedures they were meant to replace.
