Singapore's Second Largest Bank Launches Digital Security Token

Oversea-Chinese Banking Corporation (OCBC) has rolled out a digital Security Token Security Token Security tokens are cryptocurrency tokens that represent a contract into an underlying security, which could include stocks, funds, bonds, and real estate investment trusts (REITs.) Security tokens can also be used as a method of fundraising. A security token offering (STO) is similar in nature to an initial public offering (IPO), however involves tokenized digital securities, known as security tokens. These are then sold in cryptocurrency exchanges. Tokens can be used to trade real financial as Security tokens are cryptocurrency tokens that represent a contract into an underlying security, which could include stocks, funds, bonds, and real estate investment trusts (REITs.) Security tokens can also be used as a method of fundraising. A security token offering (STO) is similar in nature to an initial public offering (IPO), however involves tokenized digital securities, known as security tokens. These are then sold in cryptocurrency exchanges. Tokens can be used to trade real financial as Read this Term - OCBC OneToken - on its mobile banking app to replace the issuance of hardware security tokens and reducing SMS OTPs.

According to the official press release, the Singapore-headquartered bank is eying to save SGD 25 million ($18.5 million) in the next five years with this move.

The bank has already rolled out the service for its Singapore-based customers in January, and since then, more than one in four digital customers have activated OCBC OneToken on their mobile devices, according to the bank. In addition, more than two million transactions have been performed and authenticated with OCBC OneToken.

Commenting on the development, Aditya Gupta, head of e-business for Singapore & Malaysia at OCBC, said: “The move towards digital security tokens will allow our customers to ditch their hardware tokens and bank more seamlessly and securely with us."

The bank explained that the security token could be used with biometric authentication along with access codes and PINs. Moreover, OCBC OneToken will automatically authenticate transactions on the bank’s mobile app and also allows customers to approve transactions on their registered mobile phone when banking on other devices.

The tokens can also be used without any data connectivity by generating OTPs on the registered mobile.

“Everyone has their mobile device with them almost all the time, so having OCBC OneToken on their mobile makes digital banking totally frictionless - no SMS OTPs, no hardware tokens, no passwords needed for authentication. We are excited about the positive initial customer response, and are confident that a majority of our digital consumers will embrace this,” Gupta added.

Integrating Technology into Banking

OCBC is constantly pushing to integrate new-age technologies in the banking system. Last year, the bank launched two pilot projects to test artificial intelligence on Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term solutions.

The bank also partnered with a local startup WeInvest last August to launch a robo-adviser service for its wealth management operations.