Impact Of BVN On Financial Security In Nigeria Banks
This study is on the impact of BVN on financial security in Nigeria bank. The total population for the study is 200 staff of CBN, Abuja. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made accountants,human resource managers, senior staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
1.1 Background of Study
The rate at which fraudulent activities is going on in the country these days is becoming unbearable; the federal government of Nigeria and the CBN have being on their toes to resolve the issue of frauds and to boost financial security in most of the Nigerian banking industry; because all these issues the central bank of Nigeria on february, 2014 made it compulsory that all account holders should have a bank verification number so as to enable the account holder to have a single identity in all the banks in Nigeria; all he or she need to do is to link it with his or her accounts.
The essence of this system is to help the bank in the protection of their customers from theft and other financial/ economic crimes growing in the banking industry (orji, 2014)
The Bank Verification Nlumber (BVN) is a great step taken by the Central Bank of Nigeria, to strengthen the financial security and order in the banking sector of Nigeria. One of the importance of the BVN is that transactions will be safer once all protocol is duely observed. The essence of this BVN exercise is to ensure that bank transactions are safer and fraudulent transactions are minimized, if not totally eliminated. The central bank of Nigeria have put in alot of effort to see the success of this excercise, but the general public do not know the importance of the bank verification number; but they started seeing the importance of the bank verification number when the cental bank made it clear that the excercise will stop by october 2015.
The bank verification number system uses biometric technology to register customers in the banking sector. It records these physical features which are unique to individuals fingerprints and the face; this techniques was made effective because every individual has his or her own unique finger prints. 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
Without doubts, the Nigerian banking sector has contributed to the growth and development of the Nigeria. The Nigerian banking sector has maintained the inflow of money in the country so as to stabilize the country’s economy. According to Udenze, 2014; stated that growth in this sector has been reduced due to high cases of economic and financial crimes; fraud and money laundry have significant effect on the financial security in the Nigeria banking industry. 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 object of the research work is to elicit information on the impact of BVN on financial security in Nigerian Banks. Specific objectives of the study are:
- To monitor effect of the bank verification number on the level of financial crimes in Nigeria
- To give everyone access to a single account
- To help limit multiple account by a single owner.
- To investigate the role of the central bank of Nigeria in the implementation of the bank verification number system
- To investigate the impact of bank verification number system on the level of financial safety in the Nigerian banks
1.4 Research Hypothesis
- H0: The introduction of BVN have no significant effect on financial security
H1: The introduction of BVN have significant effect on financial security
- H0: There is no significant relationship between BVN and the level of congestion in the bank
H1: There is significant relationship between BVN and the level of congestion in the bank
1.5 Significance of the Study
The research work is a very important one as it will investigate the the role of the central bank of Nigeria in the implementation of the bank verification number system, the study will discuss the imnportance of bank verification number, the bank verification number initiatives will help limt every one to single account so as to monitor the level of financial crimes in Nigeria. The study will also discuss the role of the central bank of Nigeria in the implementation of bank verification number system. Finally the study will discuss the role of bank verification number on the level of security.
1.6 Scope and Limitation of the Study
The scope of the study covers impact of BVN on financial security in Nigeria. The researcher encounters some constrain which limited the scope of the study;
a) Availability of Research Material:
The research material available to the researcher is insufficient, thereby limiting the study
The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
c) Organizational Privacy:
Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.
1.7 Definition of Terms
Bank Verification Number
Central Bank of Nigeria
Biometrics refers to identification of an individual based on physiological attributes- fingerprint, voice, facial features etc.
1.8 Organization of the Study
This research work is organized in five chapters, for easy understanding, as follows
- Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study.
- Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature.
- Chapter three deals on the research design and methodology adopted in the study.
- Chapter four concentrate on the data collection and analysis and presentation of finding.
- Chapter five gives summary, conclusion, and recommendations made of the study
Summary, Conclusion and Recommendation
It is important to ascertain that the objective of this study was impact of BVN on financial security in Nigeria Bank. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of impact of BVN on financial security in Nigeria Bank.
This study was on impact of BVN on financial security in Nigeria Bank. Four objectives were raised which included: To monitor effect of the bank verification number on the level of financial crimes in Nigeria, to give everyone access to a single account, to help limit multiple account by a single owner, to investigate the role of the central bank of Nigeria in the implementation of the bank verification number system, to investigate the impact of bank verification number system on the level of financial safety in the Nigerian banks. In line with these objectives, two research hypotheses were formulated and two null hypotheses were posited. The total population for the study is 200 staff of CBN, Abuja. The researcher used questionnaires as the instrument for the data collection. Descriptive Survey research design was adopted for this study. A total of 133 respondents made accountants,human resource managers, senior staff and junior staff were used for the study. The data collected were presented in tables and analyzed using simple percentages and frequencies
Bank Verification Number (BVN) is a biometric identification of customers in the financial industry launched by the 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 write to use their biometrics which cannot be replicated, to tackle incidence of identity theft and enable banks to really identify their customers in the overall context of Know Your Customer (KYC) initiative. 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 and the enrolment requirement can be promptly assessed easily.
The following are recommendations. It would be interesting if there could be a very secure system whereby, anyone can log on from their phone, tablet or computer and access the registration site and enroll themselves. There is need to do a further research on the customer account linking process in the case where one person as more than three names and at least two will be required to link the account. It would be good if the database was larger such as it has a full scale of the background of each customer from place of birth to time of death and it automatically deletes the BVN at the time of death.
How To Get The Complete Material For Impact Of BVN On Financial Security In Nigeria Banks
The Complete Material will be Sent to You in Just 2 Steps
Quick & Simple…
Make a Mobile Transfer or POS Payment of ₦3,000 to any of the Account Below
|Account No.: 0811003731|
|Name: Samphina Academy|
|Account Type: Current|
|Account No.: 1225513212|
|Name: Samphina Academy|
|Account Type: Current|
Or CLICK HERE To Pay With Debit Card
|FOR CLIENTS OUTSIDE NIGERIA|
|CLICK HERE To Pay With Debit Card ($15)|
|GHANA – Make Payment of 80 GHS to MTN MoMo, 0553978005, Douglas Osabutey|
Send the Following Details on WhatsApp ( 08143831497) After Payment
- Payment Details
- Email Address
- Impact Of BVN On Financial Security In Nigeria Banks
The Complete Material Will Be Sent To Your Email Address After Receiving Your Details
T & C Apply
This research material “Impact Of BVN On Financial Security In Nigeria Banks” is for research purposes and should be used as a guide in developing your research project / seminar work. For no reason should you copy word for word (verbatim) as samphina.com.ng will not be liable for any who copied the material.
The aim of providing this material is to reduce the stress of moving from one school library to another all in the name of searching for research materials. This service is legal because, all institutions permit their students to read previous projects, books, articles or papers while developing their own works. According to Austin Kleon “All creative work builds on what came before”.
samphina.com.ng is only providing this material “Impact Of BVN On Financial Security In Nigeria Banks” as a reference for your research. The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own research. Use it as a guidance purpose only.