Several banks in the United Arab Emirates (UAE) began transitioning from traditional One-Time Password (OTP) authentication methods to more secure app-based authentication systems for transfers and online transactions in 2023, following a directive from the Central Bank of UAE (CBUAE) mandating the phase-out of SMS and email OTPs by 2026. The change matches broader digital banking trends that emphasize enhanced security and user convenience through biometric and app notification technologies.
First Abu Dhabi Bank (FAB) and other major UAE banking institutions have initiated the replacement of SMS-based OTPs with app-based authentication methods. FAB has announced that starting September 22, 2025, OTP codes for online transactions will be delivered via FAB Mobile app notifications rather than SMS, reducing vulnerabilities associated with SMS interception and phishing attempts. The change follows earlier innovations in the region, including United Arab Bank’s implementation of facial recognition technology for mobile banking authentication.
The app-based authentication systems incorporate biometric verification methods, including fingerprint and face recognition, ensuring that only authorized users can approve transactions. The approach eliminates the need for manual OTP entry while providing enhanced security measures. Digital banking security experts note that biometric verification delivers improved security, faster account access, reduced identity theft risk, and superior customer experience. Several UAE banks have already partnered with specialized providers like FaceTec to enable secure selfie-based onboarding and authentication.
The transition is partially motivated by rising fraud risks, including government impersonation scams and phishing attacks targeting OTPs. UAE banks emphasize that they never request PINs, passwords, or OTPs via phone, underscoring the importance of secure authentication channels. The app-based system maintains authentication within a protected app environment, reducing reliance on potentially vulnerable SMS or phone communications, particularly important given the 73 percent increase in digital banking fraud reported in early 2025.
Banks have implemented streamlined app onboarding processes, allowing customers to register using Emirates ID scanning and biometric face scans. The integration builds upon the UAE’s broader digital identity infrastructure, including the Tamm digital platform for government services. The system facilitates secure banking access from any location while encouraging adoption of app-based authentication methods. The implementation of these systems must align with data protection regulations and privacy laws governing biometric data usage in banking.
Sources: Khaleej Times, Apple App Store, Appinventiv
