Enhancing banking security for global travelers with eSIM technology

The Banking, Financial Services, and Insurance (BFSI) sector experiences twice as many cyberattacks on its websites compared to the global average, making security paramount. 

Every resource and practice spent enhancing security and peace of mind makes a difference. eSIMs significantly impact the financial and banking sector in two key ways: speed and security.

Financial institutions and fintech companies must seek innovative ways to enhance security and improve customer experiences. For travelers, maintaining secure access to banking services is essential while abroad. This is precisely where eSIM technology offers a powerful and secure solution.

Are eSIMs safe for banking?

In short, yes, eSIMs are safe for banking. While no technology is completely unhackable, the digital nature of eSIMs means they cannot be physically stolen or lost. As a result, customers are not vulnerable to identity theft or their SIM card numbers being used to bypass two-factor authentication (2FA) methods.

eSIMs provide significant advancements in both speed and security for the financial and banking sector. This is because they provide users a safe and reliable way to stay connected. 

Without secure internet access, customers can be left vulnerable, unable to verify payments or access critical accounts while abroad. Worse yet, customers abroad without internet access for banking operations might resort to open and unprotected Wi-Fi networks, which are prone to hackers and malware.

eSIMs allow for a reliable connection upon arrival in a new country. No need to look for Wi-Fi or physical SIM cards. Instead, users can quickly connect to a local network using an eSIM package that matches their trip length.

How eSIMs benefit your traveling customers

For customers traveling overseas, secure and reliable access to their banking and financial accounts is important for verifying payments and making bookings. However, access to bank apps requires peace of mind and assurance that they are using safe and secure internet access.

• Quick access to seamless connection: eSIMs provide an unparalleled user experience. They allow customers to activate data plans easily, ensuring immediate and reliable internet access upon arrival in a new country.
• Secure banking while traveling: Travelers frequently need to access online banking to manage expenses, pay bills, or transfer funds abroad. eSIM-enabled devices ensure secure and encrypted communication with banking apps, even when moving between countries and networks, eliminating reliance on risky public Wi-Fi.

Imagine a customer, Sarah, on a business trip in Japan. She needs to approve a large international transfer through her banking app. Instead of relying on insecure public Wi-Fi or struggling with a local physical SIM, Sarah activates her eSIM, offered directly through her bank's app. She instantly connects to a secure local network, allowing her to complete her transaction with peace of mind, knowing her financial data is protected. This increases customer loyalty and satisfaction as her challenge is directly resolved by an entity she trusts.

Why banks and fintechs benefit from an eSIM integration

The adoption of eSIMs by financial institutions is no longer a futuristic concept; it is a strategic move embraced by industry leaders. Adding eSIMs as a perk or part of travel bundles gives customers a quick option for instant connection abroad.

By providing eSIMs as an add-on to their existing services, banks and fintech companies can:

• Meet evolving customer expectations: Modern consumers, especially digital natives, expect seamless and secure digital experiences across all services. Providing integrated travel connectivity aligns perfectly with these expectations and the rise in eSIM adoption.
• Gain a competitive edge: eSIMs offer a product that enhances and adds value to banking services. To remain competitive, banks should introduce high-value products and features into their offerings.
• Reward loyal customers: eSIMs can be integrated into travel-related rewards, loyalty programs, or bundled services, enhancing customer engagement and retention. 
• Bundle eSIMs with travel perks: eSIM services can be seamlessly bundled with existing travel benefits such as currency exchange, travel insurance, and hotel discounts, creating a comprehensive and attractive travel package for customers.
• Improve security and compliance protocols: By promoting secure internet access through eSIMs, banks can enhance their overall security and compliance with data protection regulations, especially concerning customer data accessed abroad.
• Scale their product with a future-proof solution: eSIMs can easily scale to accommodate a growing customer base and expanding global reach without requiring significant additional infrastructure investment.

FAQs

Is it safe to use an eSIM? 

Yes, eSIMs are safer than physical SIMs. They cannot be physically removed if your device is lost or stolen, making it harder for unauthorized individuals to access your information. With an eSIM, there's no need to handle or swap physical cards, reducing the risk of loss or postal delays. Additionally, supported iPhone models can even have two active eSIMs simultaneously for enhanced flexibility.

Is an eSIM safer than Wi-Fi? 

Absolutely. eSIMs provide a dedicated connection via cellular data, meaning only you can access it. On the other hand, public Wi-Fi networks are shared by many users, which introduces significant security risks and can leave you vulnerable to cyber threats.

What security and data protection does Airalo implement?

Airalo adheres to stringent security and data protection standards, including GDPR, PCI DSS, and SOC 2 Type II. We take safety and security seriously to give you and your customers peace of mind. Learn more in our Trust Center.