Vincent
Created: January 31, 2025
Updated: February 2, 2025
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Read full blog postPasskeys offer phishing-resistant, passwordless authentication and are a major security upgrade for banks. However, transitioning from traditional authentication methods to passkeys presents several challenges. These must be addressed to ensure a smooth rollout and user adoption.
Banks operating in the European Economic Area (EEA) must comply with PSD2’s Strong Customer Authentication (SCA) regulations. While passkeys satisfy SCA requirements by leveraging:
Regulators have yet to explicitly approve passkeys as a standalone SCA-compliant method. Banks must closely monitor evolving regulations and proactively work with financial authorities.
Banks must ensure that customers understand how to use and trust passkeys. Challenges include:
Banks must seamlessly integrate passkeys into web banking portals, mobile apps, and ATM authentication. Key challenges include:
Although passkeys eliminate phishing risks, banks must:
Banks cannot immediately phase out passwords and SMS OTPs. Instead, a gradual transition is required:
Despite these challenges, passkeys provide a long-term solution to phishing, improve user experience, and ensure compliance with modern authentication standards. Banks that plan strategically, educate users, and integrate passkeys carefully will benefit from a more secure and seamless authentication system.
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