Emirates NBD bank said it would soon introduce a more secure, smarter, and faster way to authenticate online transactions, replacing the SMS OTP system.

The Dubai-based lender said customers will be able to authenticate online transactions as they will receive a push notification on their app, which will take them to the ENBD X app.

As reported by Khaleej Times in July, UAE banks will gradually stop sending one-time passwords (OTPs) via SMS and email for digital transactions.

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The change will apply to all types of local and international financial transfers and online transactions. Instead of OTPs, banks will shift to authentication via mobile banking apps , using in-app confirmation features.

“We are pleased to introduce a smarter, faster, and more secure way to authenticate your online transactions with the ENBD X app. We will enable this functionality soon, replacing SMS OTP. Once you initiate an online payment with your Emirates NBD debit or credit card, you'll receive a push notification on your phone to take you to the ENBD X app,” the bank said in a statement to its customers on Thursday.

Instead of OTPs, banks will shift to authentication via mobile banking apps, using in-app confirmation features. Cybersecurity expert Rayad Kamal Ayub said,“Adopting groundbreaking authentication technologies to secure transactions, safeguard customer identities, and provide frictionless user experiences."

According to a survey published by LexisNexis Risk Solutions, UAE organisations incur an average cost of Dh4.19, around four times the value of what was actually stolen, for every dirham lost to fraud. These costs encompass financial losses due to fraud, as well as internal labour expenses, external costs, interest and fees, along with the expenses associated with replacing or redistributing lost or stolen merchandise.

The survey last year found that 92 per cent of UAE firms report that fraud has influenced customer satisfaction.

Cybersecurity experts suggest that this new online authentication method will safeguard customer identities and provide frictionless user experiences.

Emirates NBD, Dubai's largest bank, said the new service will enhance security by using smart pass and biometric authentication, faster approval of transactions directly on the app, and customers will not require a mobile carrier signal, but an internet connection.

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