Table of Contents
ANZ Introduces Passwordless Banking for ANZ Plus Customers
In a groundbreaking move, ANZ has announced that its digital banking platform, ANZ Plus, will eliminate traditional passwords for internet banking, becoming the first bank in Australia to offer a completely password-free banking experience. This innovative approach is set to be rolled out from mid-2025.
New Authentication Methods
ANZ Plus customers will soon have the option to access their accounts using two authentication methods:
- Biometric Authentication: Customers can log in using passkeys, which may include their fingerprint, facial recognition, or mobile device PIN.
- Mobile Authorization: Alternatively, users can enter their mobile number to receive a login request that they must approve through their ANZ Plus app.
Maile Carnegie, ANZ’s Group Executive for Australia Retail, highlighted that this shift will "revolutionise" customer access while enhancing security. She emphasised that this new system not only simplifies the login process but also significantly mitigates risks associated with data breaches and phishing attacks.
Enhanced Security Measures
The removal of passwords is a strategic response to an increase in cybersecurity threats. ANZ’s initiative aims to protect customers from various forms of malware, including Infostealer, which compromises passwords and exposes confidential information. Recently, cyber intelligence firm Dvuln reported that over 31,000 passwords linked to customers from Australia’s major banks—7,000 of whom were ANZ clients—were leaked online. These incidents were attributed to infected devices rather than vulnerabilities within the banks themselves.
Growth of ANZ Plus
Launched in 2022, ANZ Plus has seen significant growth, recently hitting one million customers with nearly $20 billion in deposits. Carnegie stated that ANZ Plus is set to become the "bedrock" of ANZ’s retail banking operations. The bank envisions migrating its retail customers—including those from Suncorp—to the digital platform by 2029, aiming to streamline services for approximately six million customers.
Industry Trends
ANZ is not alone in this transition; other major banks are also re-evaluating password usage. NAB has announced plans to phase out traditional passwords in favour of passkeys and biometric technology within the next five years, with its digital bank, Ubank, already incorporating passkey technology.
Furthermore, Commonwealth Bank has introduced multi-factor authentication for its NetBank service, prompting customers to confirm login attempts through the CommBank app.
Conclusion
As the banking sector shifts towards more secure and user-friendly authentication methods, ANZ’s decision to eliminate passwords is a significant step not only for the bank but for the entire financial industry. This move promises to enhance customer security and redefine the way users interact with their banking services in the digital age.
