Federal Bank has taken a significant leap in enhancing the digital payment experience for its customers by introducing biometric authentication for online card transactions. This innovative move allows customers to complete e-commerce payments using their fingerprint or face ID, eliminating the need for one-time passwords (OTPs) and substantially reducing transaction times.

Streamlined Payment Process

The new biometric authentication system, developed in partnership with fintech companies M2P and MinkasuPay, promises to cut down transaction times to a mere 3-4 seconds. This dramatic reduction in processing time is expected to significantly improve the user experience for Federal Bank's customers during online purchases.

How It Works

To use this feature, customers need to provide one-time consent. The system is compatible with both Android and iOS devices, utilizing the built-in security validation features of these platforms. In cases where biometric verification fails or devices lack biometric setup, the system will default to the traditional OTP method, ensuring a seamless fallback option.

Security and Compliance

Federal Bank assures that this new authentication method adheres to the Reserve Bank of India's two-factor authentication guidelines, maintaining high security standards for online transactions. The biometric data used for verification is stored securely on the user's device, adding an extra layer of protection for sensitive information.

Availability and Future Plans

Currently, the biometric authentication feature is available to Federal Bank debit and credit card holders on select partner merchant platforms. The bank has announced plans for a phased expansion, which will gradually increase the number of merchants supporting this payment method.

Implications for Digital Banking

This initiative by Federal Bank represents a significant step forward in the Indian digital banking landscape. By simplifying the authentication process while maintaining robust security measures, the bank is setting a new standard for user-friendly and secure online transactions. As more banks and financial institutions adopt similar technologies, it could lead to a broader shift in how digital payments are conducted in India.

Federal Bank's introduction of biometric authentication for online card payments demonstrates its commitment to leveraging technology to enhance customer experience and security in digital transactions. As this technology becomes more widespread, it has the potential to reshape the e-commerce landscape in India, offering consumers a faster and more convenient way to complete online purchases.

Federal Bank Limited has announced a significant addition to its senior management team. Mr. Virendra Suryabhan Somwanshi has been appointed as the Executive Vice President & Head of Wealth & Banca, effective July 23, 2025. This appointment marks a strategic move for the bank in strengthening its wealth management and bancassurance divisions.

Extensive Experience in Financial Services

Mr. Somwanshi brings over 26 years of rich experience to his new role at Federal Bank. His expertise spans across Private Wealth, Retail Banking, and Financial Services, making him a valuable asset to the organization. Prior to joining Federal Bank, he held the position of Group President and Head of Wealth Management, Capital Markets, and NRI Business at Bank of Baroda.

Career Highlights

Throughout his career, Mr. Somwanshi has worked with several prestigious financial institutions, including:

• Motilal Oswal Private Wealth
• Bank of Baroda Capital Markets Ltd
• Citi Bank
• DCM Shriram Consolidated Ltd
• SKF Bearings India Ltd

This diverse experience across various segments of the financial industry is expected to bring fresh perspectives to Federal Bank's wealth management and bancassurance operations.

Educational Background

Mr. Somwanshi's educational qualifications complement his professional experience. He holds a Master's degree in Business Administration and a Bachelor's degree in Mechanical Engineering, providing him with a strong foundation in both business management and technical knowledge.

Regulatory Compliance

In compliance with SEBI regulations, Federal Bank has confirmed that Mr. Somwanshi is not related to any Director of the bank. This appointment has been duly reported to the National Stock Exchange of India Limited and BSE Limited, as per the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Strategic Implications

The appointment of Mr. Somwanshi as the head of Wealth & Banca suggests Federal Bank's intent to bolster its presence in the wealth management and bancassurance sectors. His extensive experience in private wealth management and retail banking could potentially drive new strategies and growth in these areas for the bank.

Federal Bank's decision to bring on board a professional with Mr. Somwanshi's caliber indicates the bank's commitment to enhancing its leadership team with industry veterans. As the banking sector continues to evolve, such strategic appointments could play a crucial role in shaping the bank's future direction and service offerings.