1.1 Introduction
Bank Verification Number (BVN) is the 11digit number you get from the bank after your picture, fingerprints, and signature have been captured electronically and successfully added to the database (Taiwo, 2015). It is refers to as Bank Verification Number because, it's a biometric system exercise adopted by the bank, which uses some of the functions of biometrics, to verify the existing data of customers in the bank in order for a unique number to be issued for curbing corrupt business practices in the financial institution (CBN, 2016). The bank verification number has the following features. Bank Verification Number is used to indicate which template should be used for comparison in the bank. If the number is stolen or seen by anyone, it can't be useful for that person because it is best used with BVN platform which only a few and selected people in the banks have access to it. In verification mode the biometric system performs a one-to-one comparison of a captured biometric with a specific template stored in a biometric database to verify the individual is the person they claim to be (CBN, 2014).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
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 Number (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 realise 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.
1.3 Statement of Problem
Investigation revealed that over the years, the banking sector of Nigeria has played the role of the intermediate body with regards to ensuring the smooth running of the economy and coordination of 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 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.
1.4 Aim and Objectives of the Study
The aim of the study is to design and implement an Online Bank Verification Number System for Nigerians in the Diaspora and at home to use. In achieving this aim, the following specific objectives were laid out as follows to develop an application software that will:
- Examine the benefits of adopting an online BVN system.
- Identify the necessary structures needed to run a successful online BVN system.
- Identify challenges in the design and implementation of an online BVN system.
1.5 Significance of 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 Scope of Study
The scope of the research is focused on the Design and Implementation of Online Bank Verification Number System.
1.7 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Establishment Policies: Establishment policies posed a serious limitation as most staffs are not ready to release information needed for this project work. There were lots of information needed from the staffs of this institution to enhance the study which took them time to release or they did not release at all for security purposes, hence the scope was reduced.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet).
1.8 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.
Registration: This means to keep records received from the management for reference purposes.
Management: It is the co-ordination of all the resources of an Organization through the process of planning, Organization, directing and controlling.
