The impact of a court ruling on the authentication process in online banking: The end of mobile banking?

The impact of a court ruling on the authentication process in online banking: The end of mobile banking?

There is a court ruling that calls into question the current authentication process for online banking. This could mean the end of mobile banking as we know it today. The Heilbronn regional court found in a ruling that problems can arise if both the online banking apps and the Push-Tan are installed on the same device. The reasons for the judgment are now explosive for the banking industry.

Since the early days of online banking, a second factor has been required to confirm transactions for security reasons. Some procedures, such as the classic tan lists, are no longer permitted due to a European regulation. Other procedures such as SMS-Tan were discontinued for cost and security reasons. Many banks have therefore recommended the Push-Tan procedure because it is simple, convenient and more cost-effective for the institutions.

The ruling by the Heilbronn Regional Court now calls the Push-Tan procedure into question and could have a major impact on the market and the financial industry. If the online banking and Push-Tan apps are on the same device, this could cause problems. Banks may need to rethink their authentication procedures and potentially switch to other, more secure methods. This could lead to changes in online banking and present customers with new challenges.

Source: According to a report by www.faz.net