UAE banks to end SMS OTPs by 2026: What in-app approval means for customers
<p>UAE banks are preparing for a major change in digital banking security by planning to phase out SMS-based One-Time Passwords (OTPs) by 2026. Instead, banks will rely on in-app approval systems, marking a significant step toward stronger cybersecurity and smoother customer experiences. This move aligns with global banking trends and regulatory efforts to reduce fraud and improve digital authentication.</p><h3>Why UAE Banks Are Ending SMS OTPs</h3><p>SMS OTPs have long been used as a second layer of authentication for transactions, logins, and account changes. However, they are increasingly seen as vulnerable. Threats such as SIM-swap fraud, phishing attacks, message interception, and network delays have exposed weaknesses in SMS-based verification.</p><p>Cybercriminals can exploit these gaps to gain unauthorized access to bank accounts. As digital transactions increase across the UAE, banks are under pressure to adopt more secure, reliable, and tamper-resistant authentication methods.</p><h3>What Is In-App Approval?</h3><p>In-app approval is a secure authentication method where customers confirm transactions directly within their bank’s mobile application. Instead of receiving an OTP via SMS, users get a push notification asking them to approve or reject a transaction.</p><p>Authentication is completed using built-in security features such as biometric verification (fingerprint or face recognition), device-based encryption, or a secure app PIN. Since the approval happens inside the banking app, it significantly reduces the risk of third-party interception.</p><h3>Benefits of In-App Approval for Customers</h3><p>The transition to in-app approval offers several advantages for banking customers in the UAE. First, it enhances security by tying transaction approval to a registered device and verified identity. Even if someone gains access to a phone number, they cannot approve transactions without access to the banking app and biometric credentials.</p><p>Second, it improves convenience. Customers no longer need to wait for SMS delivery, which can sometimes be delayed or fail due to network issues, especially during international travel. Approvals are instant and seamless.</p><p>Third, it supports a better user experience. With fewer steps and faster confirmations, customers can complete transactions more efficiently while maintaining strong security.</p><h3>Impact on Customers Without Smartphones</h3><p>One concern surrounding this transition is accessibility for customers who do not use smartphones or mobile banking apps. UAE banks are expected to introduce alternative secure methods, such as hardware tokens or assisted verification channels, to ensure inclusivity. Customers will likely receive guidance and support well before the full rollout.</p><h3>What Customers Should Do Now</h3><p>To prepare for this change, customers should ensure their bank’s mobile app is installed, updated, and linked to their primary device. Enabling biometric authentication and keeping device security features active will be essential.</p><p>Customers should also keep their contact details updated with their bank and stay informed about upcoming security updates or policy changes. Banks are expected to conduct awareness campaigns and provide step-by-step guidance during the transition period.</p><h3>Regulatory and Industry Alignment</h3><p>The move away from SMS OTPs aligns with international cybersecurity standards and digital banking regulations. Financial institutions globally are shifting toward app-based authentication and multi-factor security models. UAE banks, known for adopting advanced fintech solutions, are following this global best practice to safeguard customer data and financial assets.</p><h3>Conclusion</h3><p>The planned end of SMS OTPs by 2026 marks a major milestone in the evolution of digital banking in the UAE. In-app approval offers stronger security, faster transactions, and a more user-friendly experience. While the transition may require customers to adapt, the long-term benefits of reduced fraud and improved reliability make it a positive and necessary step forward in modern banking.</p>