The Impacts of Introducing Biometric Verification Numbers in the Banking Sector of Nigeria: A Critical Analysis
- August 24, 2019
- Posted by: RSIS
- Category: Social Science
International Journal of Research and Innovation in Social Science (IJRISS) | Volume III, Issue VIII, August 2019 | ISSN 2454–6186
Chief Ajugwe, Chukwu Alphonsus PhD.
Ajugwe Chukwu Associates
Abstract: One of the core mandates of Central Bank of Nigeria (CBN) is to promote a sound financial system in Nigeria, to this end; CBN is making consistent and well-focused policy thrusts to deepen and broaden financial system through ensuring a safety, efficient, and effective payment system. However, in performing this important task the CBN is confronted with many challenges which bedevil the banking system, more especially in the area of insider related frauds and other external ones; these have cost the banking industry billions of Naira. These fraudulent activities were exacerbated with the emergency of Information technology that revolutionaries the banking industry and ushered in electronic banking (e-banking) and electronic payment systems(e-payment) which have reduced the cost of banking transactions and increased the speed and the efficiency of transfer of funds and making payments.
It is germane to mention that e-payment has brought in a hydra-headed problem in the form of cyber related crimes. And one of the CBN initiatives to tackle this problem is the introduction of Biometric Verification Number (BVN) which will be effective parameter to alleviate the problem of cybercrimes in the banking landscape.
The paper will highlight different measures introduced in the banking sector by CBN through circular policy statements and directives to the banks with the aim to reduce to the barest minimum fraudulent activities in the banking sector, then analyze the positive impacts of BVN on the sector, the challenges being faced to implement the policies, furthermore to incisively pinpoint some of the strategic weapons deployed by CBN and other stakeholders to tackle the challenges.
I. INTRODUCTION
One of the major challenges facing the banking sector is fraudulent activities; in the form of forgeries and cybercrimes which seem to bedevil the sector, worse still the fraudsters seem to always to be ahead of the regulators in the perpetuation of their nefarious activities in the banking industries. The Central Banks (CBN) has introduced so many policies whose main thrusts were to curb fraudulent activities in the banking sector and foster a sound banking industry that will ignite, retain and reinforce the confidence of their customers.
