Banks in the UAE have suspended smart banking app access for customers who have not completed biometric identity verification, a process using facial and iris recognition to confirm the account holder's identity. Customers said they were unable to access their banking apps, and a message appeared when they tried to open them asking them to confirm digital verification in order to continue accessing banking services. Failure to complete the digital access procedures results in an inability to access the banking app, and customers are prevented from using available services or confirming electronic transactions until the verification requirements are met and the bank's approved authentication method is activated.
The measure follows the banks' transition away from SMS one-time passwords (OTPs) for verifying digital transactions. Banks now require customers to confirm transfers and payments directly through their smart banking apps, a change designed to link transaction approvals to a verified digital channel rather than a phone number. According to the source, the step is part of efforts to enhance the security of digital banking channels and reduce the risks of electronic fraud and misuse of verification codes, particularly for financial transfers and transactions requiring the account holder's explicit consent. Banks advised customers to review notifications they have already received, complete digital login procedures through official apps and channels, and contact their bank for activation steps and the mechanism for approving electronic transactions and transfers.
The UAE Central Bank began, as of July 25, 2025, implementing the gradual cancellation of OTPs sent via SMS or email and replacing them with authentication mechanisms relying on banks' smart applications. The source states this came in response to an increase in electronic fraud attempts in recent years, in which fraudsters in some cases exploited verification codes sent via text messages to access bank accounts or carry out unauthorised financial transactions. Under the new system, transactions are authenticated directly via the bank's app using biometric methods such as fingerprinting, facial recognition or the app's passcode.
The Central Bank said at the time that the step falls within a comprehensive strategy to develop the financial sector's digital infrastructure, raise the efficiency of electronic banking services and enhance customer confidence in digital channels. Banks also called on customers to update their smart apps and ensure the 'authentication via application' feature is activated. The Central Bank confirmed in its disclosure that a customer should not agree to any financial transaction unless all banking details are clear and the merchant's name and the amount are verified.