According to Philstar Biz, Philippine banks and e-wallet providers are expected to increasingly replace text-based one-time passwords (OTPs) with silent and risk-based authentication as financial institutions strengthen safeguards against fraud.
Silent authentication verifies users without requiring an explicit code entry, often using device fingerprinting, behavioral analysis, or network data. Risk-based authentication dynamically adjusts security measures based on the transaction's perceived risk level, reducing friction for low-risk activities while flagging suspicious ones.
The shift aims to improve user experience by eliminating the need to copy codes from SMS or email, while also closing security gaps such as SIM-swapping attacks. Industry observers expect adoption to accelerate as the Bangko Sentral ng Pilipinas pushes for stronger authentication measures under its digital banking roadmap.