RHB Banking Group (RHB) partners Visa and IDEMIA to introduce the first-of-its-kind RHB Rewards MOTION CODE™credit card in Southeast Asia, according to a press release. It is a high-tech payment card with a dynamic card verification value (CVV) security code, which will automatically refresh regularly.
„This technology is set to prevent credit card fraud and hackers from accessing important data and disrupting transactions. The RHB Rewards Motion Code™ credit card replaces the static card verification value (CVV) code printed on the back of credit cards today with an e-paper mini-screen, which displays a dynamic security code.”, the company said.
Technology relies on a complex algorithm to automatically generate a new code, and does not require any disruptive process such as installing a plugin or having to key in additional data.
„RHB is proud to be at the forefront of fraud prevention in Malaysia. In our efforts to curb fraud, we continue to pursue innovation in line with our aspirations to be a digital-centric bank by 2022. By partnering with Visa & IDEMIA, we have been able to leverage on best-in-class security features to safeguard our customers’ financial resources. This card provides a complete end-to-end solution for RHB as an issuer and for our cardholders. In our pursuit to create superior experiences for our customers, this technologically-driven card creates a secure space for our customers when making financial transactions.”, said Nazri Othman, Acting Head of Group Retail Banking, RHB Banking Group.
In a 2018 report by Bank Negara Malaysia (BNM), the majority of payment card fraud cases in Malaysia involved credit cards, which accounted for 92.1% of total fraud losses. Payment card fraud is mainly contributed by card-not-present (CNP) fraud such as unauthorised online transactions using stolen PIN numbers, CVV code and identity theft.
„Security and trust are the foundations of innovation at IDEMIA, and Motion Code™ technology is a result of implementing them. With zero changes required in user habit, Motion Code™ is a pioneering technology designed to prevent any online fraud and ensure seamless transactions.”, said Vincent Mouret, SVP APAC Financial Institutions from IDEMIA.
RHB targets to issue 21,000 new RHB Rewards Motion Code™ credit cards per year. Cardholders stand to enjoy unlimited rewards points for cinema, overseas spending, online purchases, exclusive golf privileges, as well as health, insurance and shopping spend, among others. Customers will also receive a waiver of annual fees on the first year.
„Though Libra has met with fierce resistance from central banks and supervisory authorities and might never see the light of day, in many other cases tech firms (both start-ups and established big players) have successfully captured bits and pieces of universal banks’ traditional value chain. This trend may only intensify in the coming years. In this environment, European banks remain squeezed.”