The Central Bank of Nigeria has frozen fintechs from using BVN (bank verification number) to validate and authenticate their users. That should not be a problem if the National Identity Management Commission (NIMC)’s NIN (national identity number) has gone mainstream. Yet, what the apex bank did is a good call because if indeed NIN is working, even BVN has to be discontinued. Companies must try to add the NIN field as quickly as possible.
“We’ve recently been made aware of a regulatory directive from the primary custodian of Nigeria’s BVN service to all their partners to suspend the provision of the BVN validation service to their third-party partners. This directive affects every non-bank in Nigeria that offers BVN Validation services. In light of this news, we’re hereby informing you that the BVN Resolve service will be temporarily unavailable starting at midnight, April 8, 2021.”
Of course, the concern remains: if fintechs cannot use the most trusted tool in Nigeria to validate users, the implication is that no fintech can live without a bank-cousin, thereby making sure the “challenger” can only be challenging and never will be in a position of dominance! I do hope that the apex bank is not making such calls here.
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