Bank Verification Number: what you need to know

Bank Verification Number (BVN) is an 11-digits unique identification number which acts as a universal ID, issued to every bank customer and linked to every bank account that the customer has in any commercial bank in Nigeria.

The BVN was launched by the Central Bank of Nigeria (CBN) on February 14, 2014 in collaboration with the Banker’s Committee as a centralized biometric identification system for the Nigerian banking industry.

Purpose of BVN
1. The primary aim of creating the unique identification number for bank customers is to stem the increasing case of identity fraud in the banking industry.

2. To use BVN information as a means of identifying and verifying all individuals that have account(s) in any Nigerian bank and as a means of authenticating customer’s identity at the point of transactions.

3. To provide a uniform industrially accepted unique identity for Bank Customers.

4. To authenticate transactions without the use of cards using only biometric features and PIN

5. To identify blacklisted customers.

In other to ensure increased enrolment of bank customers, the bankers committee in its 11th retreat held in December 2018, classified BVN into 2 categories, the BVN Premium and BVN Lite.

The BVN Premium covers bank customers that can provide the 18 basic requirements for a complete BVN enrolment while the BVN Lite will require minimal documentations like name and phone number for bank customers, especially those at the rural areas that do not meet the full requirements.

There are over 42.4 million customers that have been registered on the BVN platform since inception.

The CBN however promised to increase the number of registered bank customers to 100 million by 2024.

Benefits of BVN
1. BVN provides a unique identification that can be verified by all financial institutions.

2. It protects the bank account of customers from unauthorized access.

3. It addresses the issue of identity theft, thus reducing exposure to fraud.

4. The BVN enhances the Banking Industry chances of being able to fish out blacklisted customers.

5. Standardised efficiency of Banking operations.

Risks in disclosing your BVN?
There have been reservations among bank customers about BVN fraud, how fraudsters can use a bank customer’s BVN to steal funds in the bank account of such customer.

Nigerian Bankers say disclosing your BVN to any person or group does not pose any threat to the funds in your bank account. However, there is the need to protect and preserve your vital information, including your BVN. Use it only when necessary.

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source https://njay.com.ng/bvn-what-you-need-to-know/