With few weeks to the final deadline to bank customers to comply with the centralised biometric identification system known as the Bank Verification Number (BVN), there are strong indications that over 30 million active bank accounts may be de-activated over the failure of their owners to do so. In the event that this happens, the account owners will no longer be able to operate them, thus denying them access to their deposits. Available data from the Central Bank of Nigeria (CBN) show that out of about 52 million active accounts in various banks, total enrollment for the BVN scheme as at September 2015 stood at about 20 million. Out of this figure, about 14 million accounts have reportedly been linked to the BVN.
The implication of not meeting the October 31 deadline will be far reaching for the banking sector, account owners and the economy. The initial deadline of June 30 was extended to October 31 due to public demand following the rush to obtain the BVN in the days leading up to the June deadline.
It is bad that millions of bank customers are yet to comply with the verification exercise despite the four-month extension. They should immediately do so now to enjoy the benefits of the scheme. The BVN, which was introduced on February 14, is expected to minimise fraudulent dealings with customers’ bank accounts and improve confidence in the banking system. It is a joint initiative of the CBN, the Bankers Committee, commercial banks and the Inter-bank Settlement System.
The biometric system involves the identification of customers using a combination of physiological and other attributes such as fingerprints, signatures, facial features and other similar bio-data.
The added advantage of the biometric identification is that once a customer is registered with one bank, the information supplied is shared with other banks. This, in effect, provides adequate protection and security of transactions for bank customers. They are protected against scammers. Reports from the banks indicate that the volume of frauds in our banks has substantially reduced since the BVN became operational.
We are surprised that in spite of these gains, and the ongoing public enlightenment campaigns in the print and electronic media, many customers have not enrolled for the scheme.
We urge all bank account holders who are yet to enroll for the scheme to do so immediately. Customers should take advantage of the extension and make sure they beat the October 31 deadline. The current apathy is not in the best interest of the account holders.
This is more so as the apex bank has hinted that there will be no further extension after the deadline.
What this means is that customers without the BVN-linked accounts could risk restriction from the normal operation of their accounts. This is why this identification of customers has become imperative. With the increasing number of bank accounts and the sensitivity of new technologies, bank management no longer has room for errors. At the same time, banks are expected to do more for their customers and the economy.
For instance, one of the arguments advanced by the banks for not extending more credit facilities to deserving customers is the absence of a credit identity system. In this regard, there is a consensus in the financial institutions that the BVN scheme would make access to credit easier for low income earners in the society. This category of customers includes operators of Micro, Small and Medium Enterprises (MSMEs). It is estimated that there are over 10 million registered MSMEs in the country.
In view of the apathy of many bank customers to the BVN, we urge the banks to take a fresh look at the procedures for the biometric identification. We say this because many bank customers have complained that they are yet to get their PINs from the issuing authority after complying with the registration process several months ago. This is against the expectation that the PINs would be supplied shortly after the registration process has been successfully completed.
Since bank account holders are the targets of this exercise, both the CBN and the banks still have a lot of work to do in ensuring that customers’ biometrics are captured, and BVNs issued. Above all, account holders have a responsibility to enroll for this scheme before the October 31 deadline to protect their accounts. Doing this is in their best interest. Time is fast running out.
