As BVN deadline draws near…
As the October 31, 2015 deadline given by the Central Bank of Nigeria (CBN) to all bank customers to enrol for the Bank Verification Number (BVN) draws close, it appears that Nigerian bank customers, in their usual way, are waiting for the last minute to besiege the banks, the same way they did on the initial deadline of June 30 as if the directive on BVN had just been issued.
The BVN project was necessitated, in the first place, by the absence of a unique identifier in the Nigerian banking industry, which had been a major challenge inhibiting the effectiveness of the Know Your Customer (KYC) principle, with the attendant negative consequences on the growth of credit cards and other credit-related products.
To complement the existing means of identification of customers with other existing ones, such as driver’s licence, international passport, national identity card, and permanent voter card (PVC), the CBN, in collaboration with the Bankers’ Committee, in 2014 launched a centralised biometric identification system for the banking industry, tagged Bank Verification Number (BVN).
The BVN project is an initiative aimed at protecting bank customers and further strengthening the Nigerian banking system. It is an initiative that is expected to revolutionise banking operations in the country as it is expected to lead to the resetting of credit standards in the banking sector, among others.
At the time the initial deadline elapsed on June 30, many bank customers across the country were yet to register for the BVN. Indeed, there was last-minute rush to register which led to long queues in the banking halls, while bank customers requested for extension. Following outcry by bank customers, the CBN extended the deadline to October 31. On announcement of the deadline extension, bank customers relaxed once again and the queues in the banking halls disappeared. And now the new deadline is at the corner.
In view of this, we urge the CBN not to consider any further extension of the deadline. Indeed, we are solidly behind the CBN in its plan to bank customers who do not register for BVN access their accounts. This is because sufficient time has already been given in the past, and any customer who does not enrol before the expiration of the deadline purposely decided to abstain.
We cannot understand why a bank customer should shun a policy that gives a unique identity that is verifiable across the banking industry, makes it easier for customers’ bank accounts to be protected from unauthorised access, and equally addresses the problem of identity theft and significantly reduce fraud risks in the banking sector.
That said, we urge all banks to, within the remaining time, do everything in their power to complement the efforts of the CBN to make the project seamless and less cumbersome for their customers. The current practice of subjecting customers to filling all manner of forms at every point of contact other than the branch where they registered leaves a sour taste in the mouth. Much time is often wasted in filling these forms thereby defeating the essence of online and real time banking.