As bank customers intensify efforts to enroll for the Bank
Verification Number (BVN), the managing director of the Nigeria
Interbank Settlement System (NIBSS), Mr Ade Shonubi, has said that they
would not be charged for the BVN cards that would be issued to them
after they have completed their registration.
The BVN is an initiative aimed at protecting bank customers and
further strengthening the Nigerian banking system. It is an initiative
of the Central Bank of Nigeria (CBN), in conjunction with the Bankers’
Committee meant to address the safety of customers’ funds, avoid losses
through compromise of personal identification numbers and other criminal
activities in the industry.
The NIBSS boss, who is responsible for the implementation of the BVN,
explained that “We are giving the BVN cards out for free. The cost is
borne by the Bankers’ Committee, which considers the whole biometric
project very important. They have been bearing the cost; the cost of the
cards, cost of almost everything else that has to do with the BVN.”
Shonubi, who noted that the number of bank customers that have so far
obtained their BVN has been quite encouraging, said that going by the
current high level of compliance by customers, he was optimistic that
banks will achieve their targets of customer registration.
In a statement from the Bankers’ Committee, he said that lenders
would soon commence the distribution of the BVN cards, stressing that
the cards are ready and are with the banks awaiting collection by
customers.
“I have gotten my BVN card. I would encourage bank customers to talk
to their banks as well. They have been printing them and sending them to
the banks to distribute to the branches where you have enrolled, you
would be sent an SMS. For those that have given email address, it would
be sent their emails”, he stated.
As part of efforts to encourage enrolment on the BVN, the CBN
directed banks to only honour transactions over N100 million from
customers with BVN from March 31, 2015. Such transactions according to
the apex bank, include but not limited to, money transfers, loans, and
contingencies, among others.
The regulator also urged all bank customers to register for their BVN
by June 2015, warning that any bank customer without a BVN would be
deemed to have inadequate know-your-customers (KYC) by that date. BVN
involves the registration of customers in the financial system using
biometric technology making accounts more secure using unique
identifiers such as fingerprints.
Analysts have also described the BVN as a ‘silver-bullet solution’ to
many of the challenges in the banking industry. The BVN is a unique
identifier for each bank customer across the financial industry, making
it possible to build and track customer financial history and activity.
This will allow banks access to more reliable information that could
inform decisions on customer loan and credit applications and other
complex transactions.
The initiative, which was launched on February 14, 2014 will also
encourage financial inclusion as those who have typically stayed away
from mainstream banking due to low literacy levels will be able to open
and access their bank accounts using their biometric information rather
than traditional identification methods.
The NIBSS which is owned by the CBN and all licensed banks in the
country provides the infrastructure for automated processing of data,
such as customers’ biometric information, settlement of payments and
fund transfer instructions between banks, Discount Houses and card
companies in Nigeria.
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