As digital technology expands, traditional authentication methods like passwords and SMS, as well as one-time passwords (OTPs), are increasingly vulnerable to phishing, interception, and fraud. They are the weak link in online security, with many data breaches caused by stolen or weak passwords. So, this is no longer only a customer experience issue, but a growing security risk.
Banks are at a turning point in digital authentication, becoming more interested in moving away from OTP passwords and toward more secure passkey technology. Such a shift represents a milestone in banking security in recent years.
Seamless integration into existing banking infrastructure is essential, as is educating customers to build confidence and drive adoption.
Passkeys offer banks a powerful, passwordless alternative. Built on public-key cryptography and FIDO2/WebAuthn standards, passkeys enable secure, phishing-resistant authentication across web portals, mobile apps, and ATMs. For customers, this means logging in with biometrics or device-based credentials- no more remembering complex passwords or waiting for codes, resulting in a seamless, user-friendly experience that fosters trust and loyalty.
European banks can implement passkeys gradually while maintaining compliance with PSD2 regulations.