Design And Implementation Of An Online Interactive Banking

Computer Science Project Material with Source Code Included

Abstract

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.

Chapter One

Introduction

1.1 Background of the 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 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 devel¬opment, 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.

Chapter Five

Summary, Conclusion and Recommendation

5.0 Introduction

This chapter focuses on summary, conclusion and recommendations.

Here, the entire summary of the research from the problem stage to the implementation stage, the relevant conclusion and recommendations are discussed.

5.1 Constraints of the Study

The problems encountered during the course of carrying out this research project include:

1. Time:

Time for the research project was too short coupled with researcher’s academic time table.

2. Fund:

There was limited fund to take care of the research properly in terms of transportation and other expenses especially when visiting attraction sites.

3. Research Materials:

Lack of access to research materials on the topic in the polytechnic library and even public libraries were also major constraint in the cause of this project.

5.2 Summary

Implementation of an online bank verification number system has been carried out with a biometric data capturing feature.

The existing method of queuing at the bank to collect and submit BVN enrolment form has been so stressful, time consuming and always at a high cost. The new system would be very easy to use because of its accuracy and reliability. Information about BVN andthe enrolment requirement can be promptly assessed easily.

5.3 Conclusion

BVN is a biometrics identification of customers in the financial industry launched by the Central Bank of Nigeria (CBN) in February 2014, which is aimed at revolutionizing the payment system in the country. An Online Bank Verification Number System for Nigerian banks was produced in this application. Through the new system, customers will be assigned a single identity within the financial system. It will help people who cannot read and read and write to use their biometrics which cannot be replicated, to tackle incidence of identity theft and enable banks to really identify their in the overall context of Know Your Customer (KYC) initiative.

5.4 Recommendations

Having designed, tested and implemented the new system, the following must be put in place to fully achieve the objective of which the software is designed.