The Bank Verification Number
(BVN)became imperative following the increasing incidence of compromise on
conventional security systems such as password and Personal Identification
Number (PIN) of customers. The BVN involves identifying an individual based on
physiological or behavioral attributes, such as fingerprint, signatures and
others. The customers unique BVN is accepted as a means of identification
across all banks system.On the basis of
introducing the concepts of Bank Verification Number system, this project work
illustrates the role that the BVN plays in Nigerian banks.This research work
also analyses the existing mode of operation in the banking industry including
the need to implement our newly designed Online Bank Verification Number system
using PHP as the programming language.
with the problem of insecurity on customer accounts, the Central Bank of
Nigeria (CBN) on February, 2014 initiated a compulsory bank verification number
exercise which provides account holders with a unique number that enables the
account holder to have a single identity in the banking system aimed at
protecting bank customers from identity theft and other financial/economic
crimes emanating in the banking sector of Nigeria (Orji, 2014) .
Bank Verification Nlumber (BVN) is a bold step taken by the Central Bank of
Nigeria, to strengthen security in the banking sector of Nigeria. One beauty of
the BVN is that transactions will be safer once it is implemented fully. The
BVN exercise aims at ensuring that bank transactions are safer and fraudulent
transactions are minimized, if not totally eliminated. The campaign is on, but
the public may not realize its importance until it closes in in the new
extension deadline, October 2015.
BVN uses biometric
technology to register customers in the banking sector. It records these
physical features which are unique to individuals – fingerprints and the face.
The record would be used to identify the person afterwards. Once a person’s
biometrics have been recorded, and BVN issued the account would be accessed
through BVN. The major objectives of the initiative are to protect bank
customers, reduce fraud and strengthen the Nigerian banking system.
is helpful to people who cannot read and write. Their finger prints and
pictures would serve the same purpose as signatures. Multiple account holders
would be covered with a single registration in any of the banks where they have
BVN will help the
banking system reduce situations where loan defaulters, for instance, move from
one bank to the other and the banks extend new credits to them, without knowing
their history. Banks would be able to track transactions across all banks
in Nigeria with more ease.
STATEMENT OF THE PROBLEM
Over the years, the banking sector of Nigeria has played the
role of the intermediate body in regards to ensuring the smooth running of the
economy and coordination other sectors involved in the circular flow of income
in the Nigerian economy. However, growth
in this sector has been reduced due to high cases of economic and financial
crimes (Udenze, 2014). Fraud and money laundering have had adverse impacts on
our national development and particularly on the financial system. They have
caused damage to the reputation of the image of the country, loss of FDI, poor
infrastructural development, dwindling confidence and distortions in our
political as well as financial systems, among other things.
view of these crises crimes perpetuated by cyber thieves, the mandatory bank
verification number exercise embarked by various banks nationwide has also
caused congestions in banking halls. Although the exercise commenced since
February, 2014, the fire brigade approach of most Nigerians has warranted most
bank halls to be filled to its maximum capacity. Queues in some banks even
extended outside the banking hall. This development has caused confusion in
some banking halls as other transactions are placed on hold due to inadequate
staff to attend to clients or delayed indefinitely.
1.3 RESEARCH OBJECTIVES
main objective of this paper is to design and implement a computerized Bank
Verification Number System for Nigerians in the Diaspora and at home to use.
Specific objectives of the study are:
examine the benefits of adopting an online BVN system.
identify the necessary structures need to run a successful online BVN system.
identify challenges in the design and implementation of an online BVN system.
design and implement and online BVN system.
1.4 RESEARCH QUESTIONS
are the benefits of adopting an online BVN system?
necessary structures are needed to run a successful online BVN system?
challenges exist in the design and implementation of an online BVN system?
1.5 SIGNIFICANCE OF
study will aid in reducing queues at banking halls and reducing identity theft
if successfully implemented. Bank managers and other stakeholder in the banking
industry of Nigeria can use this web application to restore confidence in the
banking sector as more clients will be assured that their funds are safe, and
the stress of queuing at banks will be totally eliminated.
study will also serve as a guide to other student researchers who may want to
conduct further research on the subject matter. Findings and recommendations
from this system will aid in developing newer versions to serve optimally.
1.6 DEFINITION OF TERMS
CBN: Central Bank
Biometrics refers to identification of an individual based on physiological
attributes- fingerprint, voice, facial features etc.
Udenze, B. (2014). BVN: CBN targets 80% fraud reduction in
Orji, V, O. (2015).Knowledge management systems: Issues,
Communications of the Association for
Information Systems, 1(7).