The growing significance of the digital ecosystem has helped businesses attain digital transformation by rolling out new products with distinctive features. Mobile banking applications are those that help customers access most banking services online. From opening a bank account to transferring funds and making payments, banking transactions have become paperless. A digital token is another way to go with seamless and secured online banking.

Online banking has become easier, more accessible, and safer than before with soft tokens. What is a soft or digital token?

Unlike a physical token or hardware token, a digital token is integrated into a digital banking app for the customers to use on their smartphone. This software token, a digital key, helps authenticate your money transfers and payments by generating a one-time password (OTP). A digital token replaces a physical token, which is a portable device. When the battery runs out after five years, you need to replace the device to use it further.

What makes a digital token so important that you use it?

Digital tokens are gaining popularity among people, and banks like DBS encourage their customers to go online for stress-free and secured banking. With a tap, you can authenticate your online banking, eCommerce, and D2Pay (eNets) transactions. Some benefits of using a digital token are:

  1. It is highly secured

You generally receive OTPs through SMS, which may sometimes be delivered late. There is also a chance to type a wrong OTP. With a digital token, you don’t receive an SMS OTP to authenticate a payment or fund transfer. Thus, there is no risk of receiving an OTP late or someone intercepting it.

Further, a digital token is available on a banking app on your mobile phone, which is accessed only by you. As the registration and usage of the digital token are restricted to a particular user, it offers enhanced security. Even if the mobile phone is lost, you can prevent unauthorized access to your account. Moreover, data encryption allows an extra layer of security, which makes it extremely difficult for intruders to intercept the OTPs received or sent through a digital token.

  1. It offers better customer service and experience

With a physical token, you need to carry a device, and if you misplace or forget it, you cannot access online banking. It is not the case with a software token, which is easily accessible on your smartphone and enables you to authenticate banking transactions with just a tap of the button.

It is so convenient to use the virtual token anywhere and anyplace, for it is built into your banking app. All you need to do is to carry your smartphone when you go out to work. There is no need to fret about losing or misplacing the token or the device running out of battery, which is possible in the case of a physical token. Adding to it, you can have quick authentication of shopping or payment transactions with the instant generation of OTPs on a digital token.

  1. It can be set up and used instantly

To set up a digital token is easy if you have successfully installed your banking app. For instance, DBS enables you to set up its digital token by:

  • Verifying your email
  • Providing the email OTP, and
  • Providing the SMS OTP

With these steps, you can set up the digital token. With a notification authenticating your banking transactions, you can ensure that your money is safe. All you have to do is enable push notifications, and when they appear, you need to just approve them with a tap for an enhanced banking service and experience.

  1. It is safe for the environment

A virtual token doesn’t undergo any process involving manufacturing or packaging, Hence, it is environmentally friendly.

One can contribute to a more sustainable and greener future with a digital token. Today banks like DBS make a constant effort in encouraging their customers to use digital tokens to protect the environment.