Your phone is now your signature as UAE banks go paperless

For decades, a handwritten signature was the gold standard of trust in banking, but in the UAE, the ink is finally running dry. Banks across the country have begun a coordinated phase-out of traditional signatures for retail and corporate transactions. ^{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, in alignment with the Central Bank of the UAE (CBUAE), are moving toward a 100% paperless verification model. This transition isn’t just about modernizing, it’s about eliminating the human error and forgery risks that have long plagued handwritten verifications.}

UAE bank’s new digital leap

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.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. This shift is designed to tighten cybersecurity, speed up approvals, and eliminate the weakest link in digital banking authentication.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.

Biometrics and in-app approvals

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 is more secure because it operates entirely within the app’s encrypted environment, rather than over open telecom networks. It also simplifies the user experience: instead of reading a text message and typing a code, users receive a prompt in the app and confirm the payment with a tap and biometric check.Experts note that while this is a big security upgrade, it brings new risks that banks and customers must address, such as malware, phishing attempts targeting banking apps, and ensuring devices remain secure. Nevertheless, the shift represents global best practices in digital security and aligns the UAE with advanced authentication trends worldwide.

What does this mean for customers?

For everyday UAE residents, these changes mean:

Beyond banking, this shift is part of the UAE’s broader push toward a fully digital financial ecosystem, including initiatives like digital KYC platforms and pilot projects for biometric payments using facial and palm recognition. These moves help position the UAE as a global leader in secure, innovative financial technology.In short, the era of ink signatures and SMS passwords is ending. In its place is a digital-first, biometric-enabled banking experience that promises stronger protection and smoother daily interactions for everyone who banks in the UAE.