Design And Implementation Of An Online Bank Verification Number (BVN) System
The design and implementation of an Online Bank Verification Number (BVN) system are essential for ensuring secure and efficient banking transactions. The BVN system serves as a unique identifier for customers across various banking institutions, streamlining processes such as account opening, KYC compliance, and fraud prevention. By integrating robust security measures, including encryption protocols and biometric authentication, the system enhances data protection and reduces the risk of identity theft or unauthorized access. Additionally, seamless integration with existing banking infrastructure and regulatory compliance frameworks optimizes operational efficiency and enhances customer satisfaction. The design and implementation of such a system require meticulous planning, collaboration with regulatory bodies, and continuous monitoring to adapt to evolving cybersecurity threats and regulatory requirements, thereby ensuring the reliability and integrity of the banking ecosystem.
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.
INTRODUCTION
Faced 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) .
The 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.
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.
1.2 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.
In 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
The 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:
- To examine the benefits of adopting an online BVN system.
- To identify the necessary structures need to run a successful online BVN system.
- To identify challenges in the design and implementation of an online BVN system.
- To design and implement and online BVN system.
1.4 RESEARCH QUESTIONS
- What are the benefits of adopting an online BVN system?
- What necessary structures are needed to run a successful online BVN system?
- What challenges exist in the design and implementation of an online BVN system?
1.5 SIGNIFICANCE OF THE STUDY
The 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.
The 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
BVN: Bank Verification Number
CBN: Central Bank of Nigeria
Biometrics: Biometrics refers to identification of an individual based on physiological attributes- fingerprint, voice, facial features etc.
SHARE PROJECT MATERIALS ON:
Design And Implementation Of An Online Bank Verification Number (BVN) System:
The Bank Verification Number (BVN) system is a security measure implemented by banks to enhance the security of customers’ financial transactions and protect against identity theft and fraud. BVN is a unique identification number assigned to each customer in the banking system, and it is used to link all of a customer’s accounts across different banks into a single identity.
The BVN system typically involves the following steps:
- Enrollment:
- Customers are required to visit their respective banks to enroll in the BVN system.
- During enrollment, customers provide their biometric data, such as fingerprints and facial features.
- Personal information, including name, date of birth, and address, is also collected.
- Centralized Database:
- The collected information is stored in a centralized database managed by a regulatory body or a central authority overseeing the BVN system.
- Generation of BVN:
- A unique 11-digit BVN is generated for each customer based on the provided biometric and personal information.
- Linking of Accounts:
- The BVN is then linked to all of the customer’s bank accounts across different banks.
- This ensures that the BVN serves as a universal identifier for the customer in the banking system.
- Verification Process:
- When a customer initiates a financial transaction or opens a new account, the BVN is used to verify their identity.
- Banks may use biometric scanners or other identity verification methods to ensure that the person conducting the transaction is the legitimate account holder.
- Security and Fraud Prevention:
- The BVN system enhances security by making it more difficult for unauthorized individuals to access or manipulate a customer’s accounts.
- It helps prevent identity theft and reduces the likelihood of fraudulent activities.
- Access to Financial Services:
- The BVN system also facilitates easier access to financial services, as customers can use their BVN to open accounts or conduct transactions across various banks without the need for multiple identity verifications.
It’s important to note that specific procedures and regulations regarding the BVN system may vary by country, as different regions may have their own implementations and regulatory frameworks. Customers are advised to follow the guidelines provided by their respective banks and regulatory authorities when enrolling in the BVN system