UzLiDeP calls for cheaper and more secure alternatives to SMS banking alerts

In a statement published on its official Telegram channel, the party highlighted that moving away from SMS could significantly enhance cybersecurity while reducing operational costs for commercial banks.

The proposal comes as the cost of incoming SMS notifications in Uzbekistan has doubled over the past three years, rising from UZS 84.2 to UZS 168.4 per message. Beyond the financial burden, the party pointed out that the effectiveness of SMS is declining due to delivery delays, limited information capacity, and a relatively low level of protection against cyber threats.

Drawing on international experience, UzLiDeP noted a global trend where banks and payment systems are abandoning single-channel notification practices. In the European Union, digital banks such as Revolut and N26, alongside established institutions like BNP Paribas, have almost entirely transitioned to push and in-app notifications for transaction confirmations and statements. This shift has notably reduced the incidence of code theft through vulnerabilities inherent in mobile cellular networks.

The party also cited the example of Singapore, where the implementation of "Soft Tokens" – secure digital keys generated within a banking app – has replaced one-time passwords for high-risk operations. Such systems function independently of mobile cellular connections, offering a higher degree of security. According to the party's analysis, these innovations in foreign countries have led to a 50%-70% reduction in bank operating expenses compared to maintaining SMS services.

To modernize the domestic financial sector, UzLiDeP has put forward several specific recommendations. The party suggests mandating that banks and payment system operators implement cost-effective and secure notification systems as alternatives to SMS for remote financial services. Furthermore, the party advocates for ending the practice of relying on a single type of notification when activating or using bank cards.

Central to the proposal is the empowerment of the consumer. UzLiDeP believes that bank customers should be granted the legal right to independently choose the type of notification they prefer for monitoring their card transactions, whether it be via push notifications, messengers, or email.