The Central Bank of Nigeria early this year
launched the Bank Verification Number to revolutionise banking data systems in
the country. In the new series of this column starting today, we shall be
treating some basic information and knowledge every bank customer should have
concerning this major development in Nigerian banking services. BVN is a biometric authentication of bank
customers using Point
of Sale and Automated Teller Machines and the biometric
authentication is meant to address the safety of customers’ funds and avoid
losses through compromise of Personal Identification Numbers hitherto used in
bank card services in Nigeria.
The apex bank had envisaged that commercial banks
would have captured biometric details of all customers nationwide within the
next 18 months ending June 2015. The platform already rolled out nationwide
attracts no charges, and it would allow banks to enrol and verify the identity
of each customer from any point of transaction device.
The implementation is now in the second phase and
CBN has selected 1000 bank branches for this phase. The first phase was
actually a pilot scheme and the commencement of the second phase in the third
quarter of the year indicated that the pilot scheme was a success.
In the pilot phase, over 7,000 bank verification
numbers were issued by 21 banks and the Nigeria Inter-Bank Settlement System
Plc to customers. The enrolment and BVN issuance was achieved across 44 bank
branches which included 21 bank headquarters.
The initiative represented a major landmark in
the Bankers Committee’s efforts at promoting financial inclusion drive, prevent
or minimise money laundering in the system, while reducing fraud in bank
transactions to its barest minimum. The initiative would also allow banks to
give their customers unique identities.
Interestingly, Mr Godwin Emefiele, as Managing
Director of Zenith Bank then was the chairman of the Sub-Committee on
Biometrics in Bankers’ Committee, and he had said he was happy that the group
met the deadline. Two months afterwards he was named CBN Governor, assuming
full responsibility for the implementation.
Some of the benefits of the exercise are that it
will open up more consumers to banking services. The initiative supported by
all the banks in the country would also boost consumer lending. The issue of
forgetting one’s personal identity number when it comes to transaction does not
arise because the biometric cards only use bio-data information. Obviously, the
issue of identity theft is completely wiped out if you are on BVN.
The exercise only requires a valid means of
identification such as national identity, international passport or driver’s
license.
Any bank customer can go for the BVN registration
at any of the selected bank’s branches but not necessarily restricted to where
his or her account is domiciled. You can approach any branch to be directed to
the nearest branch currently executing the programme if that one is not among.
Every customer can only enrol once while it takes
an average of five to seven minutes to complete the exercise. A simple form is
then issued to the customer to fill which is to be completed and enrolment
receipt or ticket is issued after the enrolment on the spot.
Also, at the end of the exercise, the customer
receives an SMS stating his or her BVN within 24 to 48 hours.
The exercise is expected to achieve verification
and secure authentication of the identity of bank customers and ultimately
serve as a means of authenticating customer’s identity at point of banking
transactions.
It gives bank customers a uniform and single
identity called the BVN that would be acceptable across the Nigerian financial
system as all other bank accounts operated by the individual would be tied to
it.
CREDIT: PUNCH
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To Read Latest Celebrity Gossips, Entertainment News, Sports, Sex Tips, Health Tips and Lots More Visit my official News Website
www.EdesonOnlin
To read Business tips and latest trends in Technology, visit my ICT Website
www.edesoninfot
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Visit my music site www.NigeriaMusi
enjoy
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