Singapore-based OCBC Bank has introduced a digital security token on its mobile app replacing the hardware tokens in a bid to offer seamless digital banking.
The new service is expected to reduce costs by up to S$25m ($18.43m) in five years incurred through the issuance of hardware tokens and sending SMS OTPs.
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Digital security token: Details
The new OCBC OneToken is integrated for use with biometric authentication or access code and PIN. The system requires one-time set-up, following which, the customers can carry out all digital banking services on-the-go as well as on their desktop.
It enables the customers to carry out basic banking services as well as high-risk transactions without SMS OTPs or their hardware token.
The digital security token automatically validates every transaction made through the app. Additionally, if a customer is within no data network region, OTPs can be generated offline on the OCBC OneToken-registered phone.
The OCBC OneToken can be re-activated on another phone, when the customer changes their device.
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By GlobalDataSince its launch in Singapore last month, one in four digital customers has activated OCBC OneToken on their mobile devices. The service is scheduled to be rolled out in Malaysia next month.
OCBC Bank head of e-business in Singapore and Malaysia Aditya Gupta said: “Everyone has their mobile device with them almost all the time, so having OCBC OneToken on their mobile makes digital banking totally frictionless – no SMS OTPs, no hardware tokens, no passwords needed for authentication.
“We are excited about the positive initial customer response, and are confident that a majority of our digital consumers will embrace this.”
