Nigeria’s Biometric Verification Number: 5 Ways CBN Can Boost Transparency in Nigeria’s Financial System

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BVN stands as a hallmark of financial technology in Africa, originating from a collective effort by Nigerian bankers frustrated with the absence of a centralized identity system.

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The brainchild of former CBN Governor Sanusi Lamido, BVN was established with a $60 million investment, spearheaded alongside Dermalog and managed by the Nigeria Inter-Bank Settlement System (NIBSS).

While BVN has significantly bolstered Nigeria’s financial security, there are areas where further enhancements could optimize its effectiveness. Here are five crucial suggestions for improving the BVN system:

1. Self-Service Updates: Currently, updating BVN details necessitates a visit to a bank branch, a process prone to inconvenience. To streamline this, NIBSS should introduce a secure online portal. This platform would enable users to update personal information such as phone numbers and addresses, fortified by multi-factor authentication to prevent fraud and ensure data accuracy.
2. Periodic Revalidation: BVN details should undergo periodic verification to maintain relevance and security. Introducing a mandatory revalidation every five years, conducted online via the secure portal, would ensure that user information remains current and accurate. This process would also mitigate risks associated with dormant or deceased accounts being exploited for fraudulent activities.
3. Account Transparency: Users should have the ability to view all bank accounts linked to their BVN. Mandating NIBSS to provide this feature through a secure online interface would empower users to identify and disavow unauthorized accounts, thereby enhancing financial security and control.
4. Transaction Visibility and Sharing: Enabling users to access and share transaction data across linked accounts would facilitate better financial management and decision-making. With user consent, this capability could expedite processes such as loan applications or financial advisory services, bolstering transparency and efficiency in financial transactions.
5. Global Mandate for Payments: Introducing a BVN-enabled interbank payment system would enhance the ease of transactions and debt recovery processes. Authorized entities, with user consent, could initiate debits across all linked accounts, streamlining payment obligations and reducing administrative burdens for users and creditors alike.

BVN’s inception marked a pivotal advancement in Nigeria’s financial landscape. However, continual adaptation and improvement are essential to ensure its relevance and efficacy in an evolving digital age. By implementing these recommendations, the CBN can further empower Nigerians and strengthen the integrity of the BVN system, fostering a more secure and transparent financial ecosystem.

By Naija247news
By Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

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