Oversea-Chinese Banking Corporation (OCBC) has reportedly launched a digital security token called OCBC OneToken for its mobile banking app in a bid to replace the issue of hardware security tokens and reduce SMS OTPs.
As per an official press release, through this move, the Singapore-based bank is looking to save SGD 25 million over the next five years. The bank also claimed that it had already launched the service for its customers in Singapore in January. Since then over one in four digital customers have activated the OCBC OneToken on their mobile devices. Additionally, over two million transactions have been conducted and validated through the OCBC OneToken.
Aditya Gupta, Head of E-business Singapore and Malaysia at OCBC was quoted saying that the shift toward digital security tokens will enable OCBC customers to skip their hardware tokens and bank more easily and securely with OCBC.
Gupta further mentioned that since everyone has their mobile devices with them all the time, activating OCBC OneToken on their devices makes digital banking completely frictionless, requiring no hardware tokens, SMS OTPs, or passwords for authentication. Moreover, the bank is excited over initial positive feedback received from customers and is confident that most of its digital customers will adopt this technology, Gupta added.
As per the bank, these tokens can be used along with biometric authentication, access codes, and PINs. In addition, OneToken will automatically validate transactions that take place through the banks’ mobile app and would enable customers to approve transactions through the registered mobile phone when banking on other devices, the bank stated. Moreover, the security tokens can also be used without any data connectivity by creating OTP on the registered mobile device, claimed sources.
For the record, OCBC is on a constant lookout to integrate modern technologies into the banking system. For instance, the bank launched two pilot projects last year to trial AI technology on fintech solutions, reported sources.