Dermalog biometric system ensures bank ID verification for over 64M Nigerians

German identification systems firm Dermalog says a biometric platform it established for Nigeria nine years ago, in partnership with the country’s central bank (CBN), now facilitates ID verification for more than 64 million bank account owners.

A recent press release from the company recalls how in 2014 and 2015, it established a biometric verification system and a secure ABIS database infrastructure for 23 Nigerian banks using its cutting-edge face and fingerprint biometric software and hardware.

The idea of the project was to combat fraud which was endemic in the country’s banking sector at the time. The joint engagement between the CBN and the Nigeria Inter Bank Settlement System (NIBSS) entailed biometrically enrolling bank customers and issuing them a Bank Verification Number (BVN) for Know Your Customer and for authentication during banking transactions. Over 40 million Nigerians had a BVN as of 2020.

The system was built in such a way as to link the BVN to all accounts held by a user across all of the participating banks, the company said in a 2017 case study.

Over the years, the Nigerian government has encouraged citizens to register for the BVN, threatening to shut down bank accounts not linked to the biometric bank ID.

Now, Dermalog says the system which has been deployed all over the country is proving vital “in combating fraud in the financial services sector and protecting account holders from unauthorized access to their savings.”

It notes that the system is also helping simplify access to financial services for citizens, marking a major push toward real financial inclusion.

Commenting on the journey covered by Dermalog in Nigeria, the company CEO, Günther Mull, said “over the past decade, our innovative technology has made a vital contribution to enhancing security in Africa’s largest economy.”

“Our collaboration with the Nigerian banking sector is a prime example of how biometrics can streamline access to essential everyday services while significantly improving security,” he added.

Dermalog says beside helping to issue BVNs for secure and trustworthy banking transactions, the system it installed has also assisted the Nigerian government in purging more than 23,000 ‘ghost’ workers from the public services, leading to estimated monthly savings of $11 million.

Article Topics

ABIS  |  banking  |  DERMALOG  |  face biometrics  |  fingerprint biometrics  |  identity verification  |  Nigeria