Entersekt Report Says 43% May Switch Banks over Login

In Short

• Entersekt says authentication, how customers prove it is really them, is now a competitive issue for banks.
• In a survey of 400+ US respondents, 43.2% said they would consider switching financial institutions based on authentication methods alone.
• Many banks still rely on one-time passcodes, but fewer consumers see them as the most secure option.

What Happened

Entersekt published a new “State of Digital Banking Security” report on August 20, 2026. The report is based on a survey of more than 400 US respondents who bank mainly with community banks, credit unions, and regional banks.

The headline finding is customer sensitivity to login and verification flows. Entersekt said 43.2% of respondents would consider switching their primary financial institution due to the authentication methods offered.

Authentication is the step where a bank checks a customer’s identity, for example by SMS code, app prompt, fingerprint, or face scan. Entersekt argues that older methods create a trust gap as fraud attempts rise.

The report found that 46.7% of respondents said their bank still uses one-time passcodes, OTPs, which are short codes sent to a phone or email. Only 18.2% viewed OTPs as the most secure method.

There is also a blame factor. While more than 90% of respondents said fraud prevention is a top reason for choosing a bank, 41.1% said the authentication method used by their bank contributed to their fraud experience.

Why It Matters

Banks and fintechs in Africa are also pushing more transactions into apps and digital channels. That makes authentication a daily user experience problem, not just a security checklist.

The report points to “strategic friction,” meaning adding extra checks only where risk is higher, without making every customer action feel like a hurdle. It also suggests customers want more control, like choosing how they verify themselves and which transactions require approval.

For African banks and fintech operators, the takeaway is practical. If customers see SMS OTP as weak or annoying, they may prefer services that offer stronger options like passkeys, biometrics, or in-app approval prompts, as long as the flow stays simple.

Security teams also get a product mandate. Better authentication can reduce account takeovers, protect brand trust, and lower fraud losses, while also helping retention in crowded digital banking markets.