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Research Article

Development of an Online Bank Verification Number System Using Linear Congruential Algorithm

Ogunleye Gabriel Opeyemi, Fashoto Stephen Gbenga, Andile Metfula and Ogunde Adewale Opeoluwa
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Background and Objective: The already existing Bank Verification Number (BVN) software doesn’t generate the 10 digit BVN immediately it goes through a number of sources for allocation of BVN to a customer. Furthermore, because of the crime rate in the banking sector it is very onerous to access the BVN application or update information on this platform so there is a long procedure in updating information on the platform. The objective of this study was to propose a faster and new approach of generating a BVN number through the web. Methodology: In this study, a new method was adopted to replace the traditional method of generating the BVN number. A linear congruential algorithm was adapted to generate the BVN randomly. Results: The results in this study provide a faster method of generating an online BVN numbers for Bank customers. The study demonstrated that how the users can register, verify and have the BVN numbers generated on the web. Consequently, the results tallies with the present situation in the banking sector thereby addressing the challenges in the sector. Conclusion: The results will serve as a form of relieve to the financial institutions and bank customers in Nigeria.

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Ogunleye Gabriel Opeyemi, Fashoto Stephen Gbenga, Andile Metfula and Ogunde Adewale Opeoluwa, 2017. Development of an Online Bank Verification Number System Using Linear Congruential Algorithm. Information Technology Journal, 16: 62-70.

DOI: 10.3923/itj.2017.62.70

Received: January 06, 2017; Accepted: February 22, 2017; Published: March 15, 2017

Copyright: © 2017. This is an open access article distributed under the terms of the creative commons attribution License, which permits unrestricted use, distribution and reproduction in any medium, provided the original author and source are credited.


Bank Verification Number (BVN) is a new initiative introduced by the Central Bank of Nigeria (CBN) to check the prevailing money laundering and incidence of fraud in the financial institutions in Nigeria1,2. Initially, Personal Identification Number (PIN) and passwords technology were introduced in Nigeria to check financial fraud in the banking sector, but due to incessant compromise of the traditional methods in the recent times, some researchers warned that there is a need for higher level of security in the banking sector3-7. In another study, it was stated that the BVN became imperative following the increasing incidence of compromise on conventional security systems7. This called for the introduction of the BVN by the central bank of Nigeria. Previous research has reported that the current BVN is generated inside the banking hall making the whole process to be stressful and cumbersome8-10. This study introduces the online generation of the BVN using a linear congruential algorithm which is better than the former method. The BVN was introduced by the CBN in 2014 to curtail the crime in the banking sector in Nigeria. It involves identifying an individual based on physiological or behavioral attributes, such as fingerprint, signatures and others. The customers unique BVN is accepted as a means of identification across all banks systems. The BVN which is a compulsory exercise provides account holders with a unique number that enables the account holder to have a single identity in the same banking system. It aimed at protecting bank customers from identity theft and other financial/economic crimes emanating in the banking sector of Nigeria.

Previous studies have shown that BVN uses biometric technology to register customers in the banking sector11-13. The already existing BVN software doesn’t generate the 10 digit BVN immediately it goes through a number of sources for allocation of BVN to a customer14. Also, researchers have reported that because of the crime rate in the banking sector there are not much people that can access this application or update information on this platform so there is a long procedure in updating information on this platform and creating this BVN15.

The study will aid in reducing queues at banking halls and reducing identity theft if successfully implemented. Bank managers and other stakeholder in the banking industry of Nigeria can use this web application to restore confidence in the banking sector as more clients will be assured that their funds are safe and the stress of queuing at banks will be totally eliminated.

Previous studies revealed that the BVN is a plan presented by the CBN to secure client’s exchanges and upgrade trust in keeping money16,17. It includes catching client’s unique mark, among others, at their banks.

The CBN through the Banker’s Committee in Nigeria on February 14, 2014 propelled a biometric distinguishing proof framework for managing an account industry labeled BVN which gives the accompanying advantages to clients18:

Customers bank accounts are shielded from unapproved access
It will address issues of wholesale fraud, accordingly decrease introduction to extortion
The BVN will improve the Banking Industry odds of having the capacity to angle out boycotted clients
This will enhance velocity of administration and diminish lines in saving money lobbies

The NUBAN has extraordinary possibilities to determine the watched issues with electronic installments in Nigeria, the same number of them are identified with determination of wrong recipient account numbers. All deposit made to the banks are encouraged to receive this uniform calculation to acquire the check digit part of NUBAN codes of their client account numbers.

A great deal of inquiry has been raised about the pith of Bank Verification Number (BVN) when there is NUBAN as of now. Does this infer NUBAN is no more viable? Prior to answering the above inquiry, it is critical to comprehend the two ideas.

The BVN is a biometrics recognizable proof of clients in the money related industry dispatched by the CBN in February 2014, which is gone for changing the installment framework in the nation. The presentation of BVN verification is focused at tending to digital wrongdoing, ATM misrepresentation and different sorts of monetary cheats and also to defend clients’ assets to stay away from misfortunes through trade off of PIN.

The BVN is a number that empowers one individual to have a solitary character inside of the monetary framework. "The author concocted this to accomplish a couple of things; individuals who can’t read and keep in touch with utilize their biometrics which can’t be imitated, to handle occurrence of wholesale fraud and empower banks to truly distinguish their clients in the general setting of Know Your Customer (KYC) activity,"

The NUBAN is a 10-digit financial balance numbering framework that is more straightforward to use than customary longer record numbering structures and is in accordance with necessities of the West Africa Monetary Institute, towards the financial mix of economic community of west African states (ECOWAS) nations.

The BVN distinguishes you over the keeping money industry, while NUBAN recognizes you in your bank, saying "NUBAN will be NUBAN and BVN will be BVN". Banks check number distinguishes you over the business. NUBAN distinguishes you in your bank.

The utilization of Personal Computer (PC) is still new in our general public19. The development of PC innovation goes back to late 1940s in the propelled nations of America and Europe. It was brought into Nigeria in the 1970’s by the multinational organizations such as united African company (UAC), National Cash Register (NCR) and so forth while the banks grasped it in the mid 80’s.

In the 1980’s, the handling of data in Nigeria depend on the design of a centralized server PC running a multi-client working framework and different clients associated with it by means of terminals. This sort of preparing later changed to a more decentralized methodology with neighborhood Local Area Network (LAN) inside of bank offices. As of late, the utilization of cutting edge innovation has influenced all parts of the country’s saving money industry from the standard retail working, for example, money withdrawal and check handling to the creation and conveyance of advanced item, for example, remote trade swaps.

The electronic transformation in Nigeria’s keeping money division began in the mid 1990s. Nonetheless, the main obvious type of electronic advancement in the country’s managing an account industry was the presentation of ATMs in the mid 1980 by a business bank in the nation. Some different banks took after the bank’s encounters however the item was not generally welcomed by the managing account group and this doubtlessly abridged its spread in the mid 80s.

Data flows in banking represent assets or instructions which ultimately move asset. Successful frauds, will not only result in a direct financial loss for the institution but when reported in the media will detract from confidence in the institution and in the banking system in general. However, going through the corridor of history you will find out that some smart herds have been fraudulently manipulating the use of computer in banks all over the world.

The biggest bank fraud came in Los Angeles on November 3, 1978. Someone tapped the bank system, transferring funds to other bank to the tune of 10 million dollars19. This as the Federal Bureau of Information (FBI)put it Rifkin parlayed his sophisticated knowledge of electronic and computer into one of the biggest ban theft in the history.

The objective of this study was to develop an online bank verification system and use an algorithm to generate the 10 digit BVN unique numbers to different account holders, with an application in place. It will further enable the BVN platform to update customer information within seconds rather than weeks. The BVN system would be implemented with a system and also an algorithm whereby both generating the unique numbers randomly.


This study was carried out in Lagos in 2016. It uses number allocation method which is why it isn’t given immediately after enrolment at the banking hall and update could not be effected immediately because the BVN complaints all go to CBN for review before the changes made can be effected. The proposed system is such that which help a bank customer to fill and submit the BVN form online without going through the stress of queuing at the bank. It also includes submitting your biometric data after it has been captured by the newly developed system.

Flowchart for the proposed enrolment process: Figure 1 explains the enrolment process for the BVN process. This enrolment process entails the filling of form first if you have a bank account with the bank then the other steps follow if the correct spaces are filled with eligible answers then an Identification ID/CODE can be assigned.

Algorithm for random number generator
Image for - Development of an Online Bank Verification Number System Using Linear Congruential Algorithm

Algorithm random (n, m, seed, a, b)
Image for - Development of an Online Bank Verification Number System Using Linear Congruential Algorithm

Image for - Development of an Online Bank Verification Number System Using Linear Congruential Algorithm
Fig. 1: Proposed enrolment process

Figure 2 is a brief expression of how all of the components of the BVN processes are associated or which class is a sub class or a super class of a sub class. For instance, the class diagram showed the entity relationship between all the classes are stated. It also indicated 1 to many relationship and 1 to 1 relationship. For example, banking officer and the CBN.

Object diagram for the BVN process: Figure 3 represents the information of the class diagram i.e., all of the information in the class diagram (Fig. 2) is defined in this object diagram (Fig. 3). The information given in Fig. 3 answers all the questions raised in the class diagram (Fig. 2) e.g., the name of admin etc., it reflects the class diagram (Fig. 2) with objects of the same class.


Main home page: The first page that is seen by the user is the home page. It provides two main options, Registration and Verification.

Registration page: The registration page contains fields of information necessary for the user to fill in. These include: First and last names, Account no, Nationality, State of origin, Marital Status, Address etc. After the enrolment form has been filled we then submit for verification.

Image capturing page: The capturing page which is done after the enrolment form has been filled and this will be taken after which the next step is the verification stage before a BVN will be given to a bank account holder.

Image for - Development of an Online Bank Verification Number System Using Linear Congruential Algorithm
Fig. 2: Proposed class diagram for the BVN process

Verification page: Figure 4 shows the verification of a registered bank account holder having filled the enrolment form and gone through the image capturing process has been verified to be assigned a unique BVN.

Figure 5 shows the complete information for a BVN holder, this page will be printed out and given to the account holder as his/her personal copy.

Figure 6 shows the BVN allocated to the customers who have gone through the verification process and all the customer information checks out to be correct.


This study discusses a better approach of generating the BVN faster for bank customers in order to replace the current awkward process that the customers normally go through in contrast to previous studies20-23. Figure 4 shows the verification page of a customer after passing the image capturing process. This section enables the customer to capture their image using appropriate standardized size as also supported by the report of previous researches24. Figure 5 shows the complete information of a BVN printing page of a bank customer. This part affords the customers to view and print their information online. Figure 6 shows the database of how the BVN is allocated to the customers. This comprises of the server side of the bank where the bank can view the number of BVN generated and allocated to their customers.

Image for - Development of an Online Bank Verification Number System Using Linear Congruential Algorithm
Fig. 3: Proposed object diagram for the BVN process

Image for - Development of an Online Bank Verification Number System Using Linear Congruential Algorithm
Fig. 4:Verification page for BVN registration

Image for - Development of an Online Bank Verification Number System Using Linear Congruential Algorithm
Fig. 5:Printing page for BVN registration

Image for - Development of an Online Bank Verification Number System Using Linear Congruential Algorithm
Fig. 6:Bank verification number ID

This approach is better than earlier studies where the authors only proposed the BVN to be generated by the Bank Udenze24. The approach will enable the customer to generate their BVN online and get it instantly. The linear congruential algorithm approach was adopted in this study as a process of generating the BVN to customers. This study is also thereby better than the suggested method by some past works where the authors only outlined the benefits of the BVN without considering the processes of its generation25. This approach will be hosted on every website of each bank for every customer to access and will be regulated by the CBN as demonstrated in Fig. 6. The system was tested with few individuals and the results gotten were promising. The BVN had curbed the menace perpetrated by some corrupt individuals who open different accounts in several banks. In the long run, when this method is formally implemented, it will reduce queues at the banking hall and premises and also serve as a relief to the banking sector.


Bank Verification Number (BVN) is a biometric identification of customers in the financial industry launched by the CBN in February 2014, which is aimed at revolutionizing the payment system in the country. An Online Bank Verification Number System for Nigerian banks was produced in this application. Through the new system, customers will be assigned a single identity within the financial system. It will help people who cannot read and write to use their biometrics which cannot be replicated, to tackle incidence of identity theft and enable banks to really identify their customers in the overall context of Know Your Customer (KYC) initiative. The existing method of queuing at the bank to collect and submit BVN enrolment form has been so stressful, time consuming and always at a high cost. The new system would be very easy to use because of its accuracy and reliability. Information about BVN and the enrolment requirement can be promptly assessed easily. The following are future recommendations.

It would be interesting if there could be a very secure system whereby, anyone can log on from their phone, tablet or computer and access the registration site and enroll themselves.

There is need to do a further research on the customer account linking process in the case where one person as more than three names and at least two will be required to link the account.

It would be good if the database was larger such as it has a full scale of the background of each customer from place of birth to time of death and it automatically deletes the BVN at the time of death.


The study discovers a better approach to generating the BVN and thereby will assist the financial institutions in reducing queues at banking halls and identity theft. Many authors have spoken on the relevance of BVN but failed to outline the processes of generating it. The results of this study will help the banking sector in Nigeria to know the importance of having the BVN generated online.


The authors wish to thank some members of staff of Guaranty Trust Bank, Diamond Bank and United Bank of Africa in Nigeria for providing some materials and information towards the successful compilation of this study.


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