Project Abstract

Project Overview

<p> <b></b></p><p><b><b>1.0<br>INTRODUCTION</b></b></p><p><b><b></b></b></p><b><b><p><b>1.1<br>BACKGROUND OF STUDY</b></p><p><b></b></p><b><p>The<br>rate at which fraudulent activities is going on in the country these days is<br>becoming unbearable; the federal government of Nigeria and the CBN have being<br>on their toes to resolve the issue of frauds and to boost financial security in<br>most of the Nigerian banking industry; because of all these issues the central<br>bank of Nigeria on february, 2014 made it compulsory that all account holders<br>should have a bank verification number so as to enable the account holder to<br>have a single identity in all the banks in Nigeria; all he or she need to do is<br>to link it with his or her accounts.</p><p>The<br>essence of this system is to help the bank in the protection of their customers<br>from theft and other financial/ economic crimes growing in the banking industry<br>(orji, 2014)</p><p>The<br>Bank Verification Nlumber (BVN) is a great step taken by the Central Bank of<br>Nigeria, to strengthen the financial security and order in the banking sector<br>of Nigeria. One of the importance of the BVN is that transactions will be safer<br>once all protocol is duely observed. The essence of this BVN exercise is to ensure<br>that bank transactions are safer and fraudulent transactions are minimized, if<br>not totally eliminated. The central bank of Nigeria have put in alot of effort<br>to see the success of this excercise, but the general public do not know the<br>importance of the bank verification number; but they started seeing the<br>importance of the bank verification number when the cental bank made it clear<br>that the excercise will stop by october 2015.</p><p>The bank verification number system<br>uses biometric technology to register customers in the banking sector. It<br>records these physical features which are unique to individuals fingerprints<br>and the face; this techniques was made effective because every individual has<br>his or her own unique finger prints. The record would be used to identify the<br>person afterwards. Once a person’s biometrics have been recorded, and BVN<br>issued the account would be accessed through BVN. The major objectives of the<br>initiative are to protect bank customers, reduce fraud and strengthen the<br>Nigerian banking system.</p><p>Biometric enrolment is helpful to<br>people who cannot read and write. Their finger prints and pictures would serve<br>the same purpose as signatures. Multiple account holders would be covered with<br>a single registration in any of the banks where they have accounts.</p><p>BVN will help the banking system reduce<br>situations where loan defaulters, for instance, move from one bank to the other<br>and the banks extend new credits to them, without knowing their history. <br>Banks would be able to track transactions across all banks in Nigeria with more<br>ease.</p><p><b>1.2<br>STATEMENT OF THE PROBLEM</b></p><p><b></b></p><b><p>Without<br>doubts, the Nigerian banking sector has contributed to the growth and<br>development of the Nigeria. The Nigerian banking sector has maintained the<br>inflow of money in the country so as to stabilize the country’s economy. According<br>to Udenze, 2014; stated that growth in this sector has been reduced due to high<br>cases of economic and financial crimes; fraud and money laundry have significant<br>effect on the financial security in the Nigeria banking industry. They have<br>caused damage to the reputation of the image of the country, loss of FDI, poor<br>infrastructural devel­opment, dwindling confidence and distortions in our<br>political as well as financial systems, among other things.</p><p>In<br>view of these crises crimes perpetuated by cyber thieves, the mandatory bank<br>verification number exercise embarked by various banks nationwide has also<br>caused congestions in banking halls. Although the exercise commenced since<br>February, 2014, the fire brigade approach of most Nigerians has warranted most<br>bank halls to be filled to its maximum capacity. Queues in some banks even<br>extended outside the banking hall. This development has caused confusion in<br>some banking halls as other transactions are placed on hold due to inadequate<br>staff to attend to clients or delayed indefinitely.</p><p><b>1.3 RESEARCH OBJECTIVES</b></p><p><b></b></p><b><p>The<br>main object of the research work is to elicit information on the impact of BVN<br>on financial security in Nigerian Banks. Specific objectives of the study are:</p><p>1. To<br>monitor effect of the bank verification number on the level of financial crimes<br>in Nigeria</p><p>2. To<br>give everyone access to a single account</p><p>3. To<br>help limit multiple account by a single owner.</p><p>4. To<br>investigate the role of the central bank of Nigeria in the implementation of<br>the bank verification number system</p><p>5. To<br>investigate the impact of bank verification number system on the level of<br>financial safety in the Nigerian banks</p><p><b>1.4 RESEARCH QUESTIONS</b></p><p><b></b></p><b><p>1.<br>What are effects of the bank verification number on the level of financial<br>crimes in Nigeria?</p><p>2.<br>What is the impact of bank verification number system on the level of financial<br>safety in the Nigerian banks?</p><p>3.<br>What are roles of the central bank of Nigeria in the implementation of the bank<br>verification number system?</p><p><b>1.5 RESEARCH HYPOTHESIS</b></p><p><b></b></p><b><p><b>H0:</b><br>The introduction of BVN has no significant effect on financial security</p><p><b>H1:</b><br>The introduction of BVN has significant effect on financial security</p><p><b>H0:</b><br>There is no significant relationship between BVN and the level of congestion in<br>the bank</p><p><b>H1:</b><br>There is significant relationship between BVN and the level of congestion in<br>the bank</p><p><b>1.6 SIGNIFICANCE OF THE<br>STUDY &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; </b></p><p><b></b></p><b><p>The<br>research work is a very important one as it will investigate the role of the<br>central bank of Nigeria in the implementation of the bank verification number<br>system, the study will discuss the importance of bank verification number, the<br>bank verification number initiatives will help limit everyone to single account<br>so as to monitor the level of financial crimes in Nigeria. The study will also<br>discuss the role of the central bank of Nigeria in the implementation of bank<br>verification number system. Finally the study will discuss the role of bank<br>verification number on the level of security.</p><p><b>1.7 SCOPE OF STUDY</b></p><p><b></b></p><b><p>The<br>research work is limited to the study of the impact of BVN on financial<br>security in Nigeria banks.</p><p><b>1.8 LIMITATION OF STUDY</b></p><p><b></b></p><b><p><b>FINANCIAL CONSTRAINTS</b>:<br>insufficient finance has made the research unable to get all the necessary<br>materials needed for the purpose of the research work but the researcher was<br>able to make do with the materials available to get meaningful information<br>concerning the research topic</p><p><b>TIME CONSTRAINTS</b>:<br>the researcher being a student is involved in other departmental activities<br>like seminar presentation and assignments but was able to meet up with the time<br>allocated for the completion of the research work</p><p><b>1.9 DEFINITION OF TERMS</b></p><p><b></b></p><b><p><b>BVN: </b>Bank<br>Verification Number</p><p><b>CBN</b>: Central Bank<br>of Nigeria</p><p><b>Biometrics</b>:<br>Biometrics refers to identification of an individual based on physiological<br>attributes- fingerprint, voice, facial features etc.</p><p><b>REFERENCES</b></p><p><b></b></p><b><p><i></i></p><i><p>Orji, V, O. (2015).<i>Knowledge management systems: Issues,</i></p><p><i></i></p><i><p><i>challenges, and benefits</i>. Communications of the Association for Information Systems, 1(7).</p></i></i></b></b></b></b></b></b></b></b></b></b></b></b> <br><p></p>