A total of 61,471,380 BVNs have been issued as of April 2024, according to statistics on the NIBSS website. Curious to know what these are and how they function?

What is a Bank Verification Number?

A Bank Verification Number, or BVN for short, is an 11-digit identifier. This unique number is assigned to every customer within the Nigerian banking system. It serves as a means for banks to verify a customer in terms of their identity.

The BVN is effective in its role as an identifier because it is linked to customer biometrics (specifically their fingerprints). The thing about this is that biometric features such as a person’s fingerprints and iris are very unique. No two people have the same of these.

This is what the BVN system relies on.

The system ensures that each banking customer is uniquely captured using their fingerprint and also given a unique number.

How a Bank Verification Number Works

A BVN can only be created once for a specific individual. Nevertheless, once generated, the identifier is shared across the banking network in Nigeria. This serves a second function of tracking customer activities and building a banking profile for them.

For example, let’s say you open your very first bank account at Guaranty Trust Bank. A unique BVN will be generated for you. At the same time, your identifier will be sent across to all banks in the country.

This helps the bank system as a whole to keep track of your activities.

For instance, with your BVN alone, you could easily access certain services at UBA or any other bank you can think of. This is possible because the new bank you visit can pull up information about you through your BVN. Such identification and referencing sums up to effective service delivery and crime prevention.

The Benefits of BVN

BVN presents several benefits both within and without the banking and financial sector.

Blacklisted individuals can be easily spotted:

One of the successes of BVN is in uncovering blacklisted individuals - and subsequently limiting their activities. You see, fingerprints don’t lie.

Once an individual is blacklisted, banks can look out for their fingerprint or BVN being used in a transaction. They can proceed to block such a transaction or temporarily delay it while they review it for fraud.

Reduced Exposure to Fraud:

To guard against fraud, various bank processes will require customers to input their unique BVN. This makes sense since you’re not expected to share your BVN details with anyone.

However, if it so happens that someone steals your Bank Verification Number, their chances of making good use of it are limited. If a bank suspects impersonation or fraud, they usually go ahead to request for a fingerprint scan along with the BVN provided by a customer.

A New Form of ID:

There are a handful of ID documents which you can apply for and possess as a valid Nigerian citizen. Examples are your driver’s license, voter’s card, and NIN. A new addition to these different forms of identification is the BVN.

The prove that your BVN is a valid form ID is that several institutions request that you present it to them during one registration or the other. These does not have to relate to banking or financial activities.

Reduced Cases of Unauthorised Access:

Banking customers are prone to having their PIN or passwords stolen. Criminals use these stolen details to gain unauthorised access into a user’s account. They may then withdraw or transfer, manipulate existing settings, or even go on to change the account password.

But how do criminals manage to steal secure login credentials? It could be as simple as looking over a user’s shoulder while they use the ATM or any mobile banking platform. Most PIN and passwords are only a few characters long. This makes them memorable and allows criminals to capture the information at first glance.

Fortunately, the case is different with BVNs.

The reason is because they consist of 11 digits, which is longer and more diffiuclt to commit to memory compared to a four digit PIN or most passwords.

How to Receive a Bank Verification Number (BVN)

BVNs are issued by all commercial and Deposit Money Banks (DMBs) across Nigeria. As we mentioned, the identifier is only issued once. It is the responsibility of any bank you patronize to provide you with a BVN.

As a First Time Account Owner:

  • Walk into any bank of your choice.
  • Request to open an account
  • Inform the customer service agent that you do not have any prior bank account with any bank.

In this case, a BVN will be generated for you alongside a new bank account. Both the account and BVN details will be sent to you. The BVN detailed will be shared across the banking network.

As an Active Bank Account Owner:

  • Walk into any bank where you have an active account
  • Inform them that you want a BVN generated
  • Confirm that a BVN has not been previously generated for you either by the same bank or a different bank where you are an account owner.

In this case, a BVN will be generated and linked to all your exsitng bank accounts. The BVN information will be shared with every bank where you are an account holder. The identifier will also be registered on the banking network.

Conclusion

Having a BVN is not optional. It is mandatory for everyone making use of one or more banking services within the country. So if you haven’t already gotten yours now is a good time to do so.