The future of NAB online banking is set to turn from passwords to passwords and biometric recognition technology.
The big bank has revealed it will ditch passwords, calling notoriously weak cybersecurity measures that consistently fail an onslaught of cyberattacks.
The bank’s digital subsidiary ubank can now be unlocked with an access key and NAB said its online bank will operate in a similar way over the next few years.
NAB chief security officer Sandro Buccianeri said the bank’s strategy was to balance security with usability.
Get too technical and consumers will forego security measures for a simpler alternative, but make it too easy and the bank puts customers at risk of devastating losses.
Because a password must be simple enough to remember, is it often simple enough for malicious actors to guess or protect it.
Instead, passwords use fingerprints, faces or secure codes on customers’ phones.
Account unlock passwords for the NAB subsidiary currently require a device that supports and has been upgraded to iOS 16 or later, or Android 9 or later, and a device that has a PIN or FaceID screen lock.
Passwords are then generated in the phone settings.
“As Australia’s largest business bank, we recognize and understand the important role we can play – alongside government and industry – in the fight against malicious cyber activity,” said Sandro Buccianeri, NAB’s Chief Security Officer.
“When it comes to cybersecurity and the use of passwords, vigilance is key.
Trying to find the right balance between security and usability is something we are constantly striving to achieve, but we will always put the security of our customers and the bank first.”
“Digital Banking Boom”
NAB’s announcement comes as the RBA revealed digital payments figures in its monthly snapshot for the first time on Monday, showing just how big the surge in digital banking has been.
More than 500 million payments were made using mobile wallets in October, totaling more than $20 billion, the RBA said.
ABA chief executive Anna Bly said: “Australia is well and truly on a digital banking boom.”
“Go back a decade and almost nobody was paying with a digital wallet. We are now seeing over half a billion payments made with mobile wallets in just one month.
“With the continued growth of digital payments, it is critical that these transactions are subject to the same oversight and consumer protection laws as the rest of the payment system.
“That’s why the ABA supports the legislation currently before Parliament that will ensure Australia’s payments regulatory framework remains fit for purpose and embraces new market entrants.”
