When Was BVN Launched, Implemented And Started In Nigeria

Bank Verification Number (BVN) was launched, implemented or started in Nigeria in the year 2014.

     Furthermore:
The Central Bank of Nigeria (CBN) has introduced a bank verification number scheme into the banking system. The scheme aims to revolutionise the country's banking and payment systems. The bank verification number scheme is designed to address issues such as: ensuring the safety of depositors'
funds; avoiding losses through the
compromise of personal identification numbers; preventing identity theft;
checking fraud; and.including illiterate persons in the banking system. Background The CBN plans to roll out the scheme to 1,000 bank branches in Lagos State, Nigeria's commercial capital. The success (or otherwise) of this rollout will determine how it will be implemented in other states. In essence, the bank verification.number is a biometric registration of customers in the financial system. Its introduction is intended to tackle cybercrime and ATM fraud. The CBN has stated that the bank verification number allows a customer to have "a single identity within the financial system". Thus, people who are unable to read and write will be able to use their biometrics for banking transactions, as this cannot be replicated. It will tackle incidents of identity theft and enable banks to verify their customers easily in the context of the Know Your Customer initiative. Dermalog BMS, the German company which handled the project, stated that it was the first time that any country had implemented the platform for national use. Therefore, this may be a positive first for the Nigerian banking industry and, in the longer term, the African banking industry. Deposit money banks were expected to commence biometric registration of customers in the week beginning June 16 2014. The Nigerian Inter-Bank Settlement System (NIBSS) is providing the connectivity service for the initiative. NIBBS believes that the project is a.major landmark for the Nigerian.financial industry as it will promote.financial inclusion and prevent money laundering, as bank verification numbers will give customers unique identities, which will be difficult to replicate.

        Also Read:  Top 10 Banks In Nigeria

Reaction
The introduction of the initiative has
divided opinion in the Nigerian banking sector. Supporters of the initiative say that the added security features will lead to increased consumer lending and will boost the economy, irrespective of customers' status and class. However, critics of the bank verification number scheme state that it is a.duplication of efforts due to the introduction of the Nigerian uniform bank account number system (NUBAN) into the Nigerian banking system a few years ago. NUBAN, which was introduced by the CBN in 2010, is a 10- digit bank account numbering system which is easier to use than the traditional longer account numbering structures. It conforms with the requirements of the West African Money Institute, which promotes the financial integration of the Economic.Community of West African States countries. NIBBS officials have stressed that NUBAN identifies a customer within his or her own bank, while the bank verification number scheme will identify a customer across the entire banking industry. Thus, a customer will have the same bank verification number even if he or she has multiple accounts at different banks. 


Comment
It remains to be seen whether the
introduction of the bank verification
number scheme will combat financial
crime and boost the economy as its
supporters claim. Only time will tell if this will be a successful project or an expensive but failed venture. Whatever the case, it will be a watershed moment in the Nigerian financial industry.

Comments

Post a Comment

Popular posts from this blog

Swift Code/BIC Is It Same As BVN

Image
👉Swift code/ BIC:  A SWIFT code — sometimes also called a SWIFT number — is a standard format for Business Identifier Codes (BIC). It’s used to identify banks and financial institutions globally. It says who and where they are — a sort of international bank code or ID.    These codes are used when transferring money between banks, in particular for international wire transfers or SEPA payments. Banks also use these codes to exchanging messages. 👉BVN: As you may already be aware, the Central Bank of Nigeria (CBN) in conjunction with the Bankers Committee has launched the Biometric Identification Project to provide a single biometric database for all banks’ customers nationwide.           Part of the requirements within this initiative is that customers enroll with their banks to get their unique Bank Verification Numbers (BVN), without which customers will not be able to transact in any bank if not obtained.    Also Read: CIT bank branches in California . Gtbank BVN .
Read more

DEJI POPOOLA - Fina Trust Microfinance Bank MANAGING DIRECTOR

Image
 Managing director of Fina Trust Microfinance Bank, Biography of Deji Popoola, Read Below    He started his career at African International Bank and subsequently also gathered various banking experience ranging from Commercial Banking, Retail Banking, Oil & Gas and Branch Management Operations. He has worked with some of the leading banks in the country that include Oceanic Bank Plc, UBA, Ecobank Plc and others where he had a very progressive career growth.    He has over 23 years experience spanning from Auditing, Banking, Consulting to Real Estate Investment. Prior to now he was the Pioneer MD/CEO of Citiserve Micro Finance Bank, VG Estates Ltd before Joining Fina Trust Micro Finance Bank as the pioneer MD/CEO.    He is a graduate of Management & Accounting, and also holds MBA from Obafemi Awolowo University Ile–ife. He is a Member of the Chartered Institute of Stockbrokers (CIS) and a Fellow of the Institute of Chartered Accountants of Nigeria. Alumnus, University of Cape To
Read more

Here are six ways your bank account can be hacked With BVN

Image
   With current attempts by fraudsters to access people’s bank accounts through text messages, emails, phone calls, etc., it is important we are armed with the knowledge of the different ways our bank accounts can be hacked by fraudsters. This will help us better discern their gimmicks, avoid their traps and keep our money safe. Here are six ways your bank account can be hacked: Trusting suspicious e-mails, text messages and phone calls In 2015, the Oyo State Police Command arrested BabatundeFatai, a young man, for various Internet frauds. Some of the crimes included hacking bank accounts of people in and outside Nigeria. Fatai revealed that to hack into bank accounts, he would either go to dating sites to woo men and women into trusting him with their account details, or he would send fake e-mails to bank customers asking them to change their accounts and bank security details. Fatai will then use their ‘old’ security details to access their accounts and transfer their money to his on
Read more