Why should banks wave goodbye to authentication via SMS-OTP? Authentication via SMS-OTP is considered outdated because of higher overall costs, low user convenience, and insufficient regulatory compliance in specific geographic regions, but primarily for practical security reasons. Banks and financial institutions should phase out this method and replace it with more secure user authentication, such as via mobile apps or hardware tokens.

1. CONTACT
Petr Dvořák
email: petr@wultra.com
phone: +420 728 727 714
Modern mobile identity:
Moving away from SMS-based
authentication

2. We help the leading banks
and fintech companies to
secure their digital systems
and bring trust to
customer journeys.
2014
Founded
550+
References
5
Continents
Powered by

3. SMS OTP

4. Tragically Insecure
Phishing
Since the codes must be rewritten
to related applications, they are
susceptible to phishing.
SIM Swapping
Due to insufficient KYC processes
at telco, incorrect user may obtain
the SIM card.
Android Malware
Standard features of the Android
OS allow reading SMS messages
or screen contents (accessibility).
Telco Infrastructure
The SMS infrastructure is antique
and therefore, messages may travel
or be stored unencrypted.

5. And More Issues…
Way Too Costly
The more your users use your
systems, the more you pay for SMS
delivery.
Hard to Read
Since the text in SMS message is
not formatted, it is not easy to
review the operation.
Hard to Use
Since the code from SMS has to be
rewritten, there is additional friction
in user experience.
Low Compliance
Regulatory frameworks such as
PSD2 are suggesting shift away
from SMS codes.

6. There has to
be a better
way!

7. Mobile Token
PSD2 Compliant Strong Customer
Authentication

8. Just Use a Mobile App…
➡ Secure and compliant
➡ User-friendly
➡ Cost-effective
➡ Branded experience

9. Digital Onboarding
➡ Access within 5 minutes
➡ User-friendly, mobile-only process
➡ Personal ID and facial biometrics

10. Customer Authentication
➡ Login and payment confirmation
➡ Biometrics or PIN code
➡ Dynamic linking

11. Mobile Security
➡ Multiple layers of security
➡ App Shielding
➡ Persistent malware protection

12. Mobile token is as
simple to introduce
as SMS OTP.
"

13. SMS OTP
Telco System
Infrastructure
Your Digital
Banking Backend
Applications
Send SMS OTP
SMS Gateway
System SMS App
Rewriting
12345678

14. Mobile Token
Mobile Token
Infrastructure
Your Digital
Banking Backend
Applications
Cloud or On-Premise
RESTful API
Create Operation
Push Notifications
Rich Mobile App
Confirming

15. Straightforward Technology
POST /v2/operations
{
"userId": "user-1232",
"template": "payment",
"parameters": {
"amount": "2443.54",
"currency": "EUR",
"account": "34842343208/5500"
}
}
developers.wultra.com

16. For Mobile and Web
SDK
SDK APP
Mobile Banking Internet Banking

17. One helpful business
chart…

18. Joyful
Painful
Expensive
Cheap
Mobile Token
SMS OTP
Card Reader
USB Token
OTP Generator

19. Cost savings up-to
60%

20. Just Use a Mobile App…
➡ Secure and compliant
➡ User-friendly
➡ Cost-effective
➡ Branded experience

21. Thank You!
CONTACT
Petr Dvořák
email: petr@wultra.com
phone: +420 728 727 714