UAE banks have begun a coordinated phase-out of traditional handwritten signatures for retail and corporate transactions, according to The Times of India. This shift means that the days of meticulously signing checkbooks or loan applications with a pen are being replaced by a 'digital handshake'. Leading financial institutions are moving toward a 100% paperless verification model in alignment with the Central Bank of the UAE (CBUAE).
Another landmark change is the elimination of SMS-based one-time passwords (OTPs), a familiar security tool used for years to approve online transactions. UAE banks officially stopped sending OTP codes by SMS for online card payments from January 6, 2026, and all banks are required to phase out both SMS and email OTPs by March 2026 at the latest, under Central Bank directives. The shift applies to transactions that require customer approval and verification of account-related information exchanged between banks, with documents subsequently authenticated via the central bank's official platform.
Instead of relying on codes sent through carrier networks, which are vulnerable to fraud tactics like SIM swapping and interception, customers must now authorise transactions directly through their bank's mobile app. Banks have been notifying customers in advance, urging them to update apps, enable notifications, and set up in-app authentication features (including biometrics) to ensure a seamless experience. Without app-based verification enabled, online payments could be declined once SMS codes are turned off.
The replacement for SMS OTPs isn't just another password or code, it's in-app approvals backed by biometrics. Most UAE banks now let customers confirm transactions right inside their mobile banking app with fingerprint scans, facial recognition, or secure app-based PINs. This method operates entirely within the app's encrypted environment, rather than over open telecom networks, and simplifies the user experience by eliminating the need to read text messages and type codes.
The shift to digital verification is supported by government-backed platforms that could be expanded to support other banking services, according to banking sources. These platforms are supported by initiatives such as open finance and the use of blockchain technology, which could help reduce errors, speed up transactions, enhance identity verification and curb fraud. The digital identity platform allows customers to sign electronically, with no longer a need for handwritten signatures or physical presence at branches.
For everyday UAE residents, these changes mean faster, paperless banking with no more branch visits for approvals. The shift also means more secure authentication, moving beyond SMS codes to identity tied directly to the user and device. Greater reliance on mobile banking apps means your phone becomes the hub of authorisation and identity. Customers must prepare by updating banking apps, enabling push notifications, and activating biometric login features to avoid disruptions.