THE Bank Verification Number, BVN, is an-other
important step the Central Bank of Nigeria, CBN, is
using to strengthen the security of banking
transactions and to ensure that fraudulent
transactions are minimised, if not totally
eliminated. The campaign is on, but the public
may not realise its importance until it closes in
June 2015.
Yet as the public embraces the initiative with
enthusiasm, it should be aware that some
fraudsters are trying to undermine the exercise by
providing seemingly easier registration options for
bank account holders. They request these details
online and threaten that the account would be
closed if the owner does not provide them the
details. Their target is the account holder’s
money. The best way of enrolling remains direct
communication with one’s bank.
BVN uses biometric technology to register
customers in the financial system. 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.
Biometric enrolment 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 accounts.
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.
As CBN implements the BVN initiative, it has to
ensure the security of the data, from rogue bankers
and also importantly from damage, as has been
the experience with other sectors that engaged in
biometric enrolments. It should also create
measures to punish banks that might exploit the
information they have to blackmail customers with
whom they have disagreements.
BVN is a great initiative that would reduce illegal
banking transactions and improve national financial
intelligence gathering. The interests of account
holders should be accorded importance so that
their increased confidence in the banking system
would improve the financial standing of banks.
Customers will use banks more when they know
that their transactions are safe. BVN offers vast
opportunities to protect customers, banks and the
entire financial system.
The CBN should enhance the security of BVN to
protect the entire financial system. It should be on
the watch for technologies to keep improving BVN
capacities.
http://www.vanguardngr.com/2015/04/importance-of-bank-verification-number-2/

Ok

Blarrrrrrrrrr. That 1 no mean say,working men no go collect deir pay.