Lloyds is trialling the use of near-field communication (NFC) to replace security phone calls during the authentication process for its mobile banking app.
The ‘tap to bank' concept involves customers tapping a Lloyds contactless card on an Android tablet or smartphone with NFC connectivity to authenticate themselves.
People who want to register to use the banking app currently need to authenticate themselves through an automated phone call.
Lloyds his testing the service with over 125 people, and claimed that it speeds up the authentication process for mobile app users as they no longer need to go through the security call which can take up to a minute to complete.
The bank also claimed that tap to bank could be used for other tasks that require user authentication, such as authorising new payments.
Marc Lien, director of innovation and digital development at Lloyds, said that tap to bank is an example of contactless technology finding its way into mobile devices and bank cards.
"With the widespread take up of contactless cards and most new smartphones now having NFC technology, this tap to bank trial is developing enhancements to banking processes that many people could benefit from," he said.
Lien added that tap to bank is one of several new technologies Lloyds is experimenting with to make life easier for customers.
A Lloyds spokesperson told V3 that to bypass security concerns, tap to bank replaces only the phone call authentication stage in the mobile app.
An initial verification stage is needed before tap to bank can be used, thereby ensuring that the customer is who they claim to be, and not a thief who managed to steal a smartphone and bank card.
The spokesperson said that tap to bank will be rolled out over the coming months if the trial is successful and well received.
The bank also announced that it has a faster method of authenticating desktop payments. The system allows users to authenticate certain requests, such as setting up standing orders, by logging into the Lloyds mobile app to verify their identity.
Lloyds claimed that this cuts out the need for automated verification calls and enables the customer to carry out an authentication process in under 20 seconds.
This could help blind or hard of hearing customers to benefit from the faster authentication process, Lloyds said.
The company is pursuing several contactless and mobile payments technologies, and will support Apple Pay when the service launches in the UK on 14 July.
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