The need to operate a financial system that cannot be compromised has prompted the introduction of biometrics technology in the Nigerian banking system.
Biometrics is the use of biological characteristics such as fingerprints or iris patterns to identify a person to an electronic system. The technology identifies an individual based on physiological or behavioural attributes.
On February 14, 2014, the Central Bank of Nigeria (CBN) through the Bankers’ Committee and in collaboration with all banks in Nigeria launched a centralised biometric identification system for the banking industry labelled Bank Verification Number (BVN).
According to the apex financial regulator, the purpose of the BVN project is to use biometric information as a means of first identifying and verifying all individuals that have account(s) in any Nigerian bank and consequently, as a means of authenticating customer’s identity at point of transactions.
[blockquote right=”pull-right” cite=”CBN”]“The architects of the anti-fraud technology reckon that since no two persons have the same biometric features, the project will address issues of identity theft and reduce exposure to fraud.”[/blockquote]