SMS OTP vs Banking App OTP ( Authentication ) , which one is good for you ?
SMS-based OTP authentication and mobile app-based authentication each have their own advantages and disadvantages.
Advantages of SMS-based OTP authentication:
Accessibility: SMS-based OTP authentication is widely available and compatible with most mobile phones, which makes it easy for customers to use.
Familiarity: SMS-based OTP authentication is a familiar process to most users, and it is often used across multiple services, which makes it easy for customers to understand.
Convenience: SMS-based OTPs are typically sent automatically, which means that users do not need to manually generate or enter a code.
Disadvantages of SMS-based OTP authentication:
Security: SMS-based OTP authentication is vulnerable to hacking and interception, which can compromise the security of a user's account.
Dependence on network: SMS-based OTP authentication relies on network connectivity and can be delayed or failed to be delivered in areas with poor network coverage.
Advantages of mobile app-based authentication:
Security: Mobile app-based authentication is generally considered more secure than SMS-based OTP authentication, as it uses more advanced encryption and is less susceptible to phishing attacks.
Reliability: Mobile app-based authentication does not depend on network connectivity, which means that users can still access their accounts even in areas with poor network coverage.
Integration: Mobile app-based authentication can be integrated with other security features, such as fingerprint or facial recognition, to provide a more seamless and secure user experience.
Disadvantages of mobile app-based authentication:
Complexity: Mobile app-based authentication can be more complex than SMS-based OTP authentication, requiring users to install and use a dedicated app.
Compatibility: Mobile app-based authentication may not be compatible with all mobile devices, which could limit its accessibility for some users.
In summary, while SMS-based OTP authentication is widely used and familiar to most users, it is considered less secure than mobile app-based authentication. However, mobile app-based authentication can be more complex and may not be compatible with all devices. As such, banks and other financial institutions may need to strike a balance between security and accessibility when deciding which authentication method to use.
