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In many markets, USSD-based mobile banking solutions are adopted as a means to advance financial inclusion, enabling access to basic banking services without the need for internet connectivity or smartphones.While these solutions are undeniably simple and cost-effective, their alignment with recognised information security management standards requires careful and objective evaluation, particularly within regulated financial environments. The USSD Authentication Model The typical USSD authentication model relies on two primary elements: a mobile number registered with the telecom operator. a numeric PIN entered by the user. From an ISO/IEC 27001:2022 risk management perspective, this model presents inherent structural limitations that must be explicitly acknowledged and assessed. Key Security Risks in a USSD Context Confidentiality of authentication information: PINs are entered in plain text and may be observed, conflicting with the principle of protecting sensitive information. Reliance on SIM possession: SIM swap and SIM cloning attacks undermine identity assurance and access control mechanisms. Lack of asset binding: the absence of device-level trust weakens logical access controls. Single-factor dependency: compromise of a single factor can result in full account compromise, increasing residual risk. Absence of end-to-end encryption: exposure of data within third-party telecom infrastructures challenges confidentiality and integrity requirements. Transaction Authorisation and Control Effectiveness In SIM swap scenarios, transaction confirmation mechanisms that rely on the same communication channel, such as SMS, USSD-based OTPs or voice calls, do not constitute independent controls.From an ISO/IEC 27001:2022 standpoint, this creates control dependencies that significantly reduce overall effectiveness.For users limited to feature phones, physical hardware tokens remain the only truly independent second factor capable of mitigating this risk. However, they introduce additional operational cost, distribution challenges and lifecycle management complexity, often conflicting with financial inclusion objectives.Experience from large-scale deployments, including M-Pesa, confirms that SIM swap fraud is a material and recurring risk, with measurable financial, operational and consumer protection implications. The NEARSOFT Digital Banking Platform Approach As smartphone adoption increases, including in emerging markets, more robust, auditable and proportionate security control frameworks become feasible.The NEARSOFT Digital Banking Platform is developed and operated by NEARSOFT, an organisation certified under ISO/IEC 27001:2022, supported by a formally implemented and externally audited Information Security Management System (ISMS).Within this framework, the platform is designed with: Device binding as a trusted asset: logical access is restricted to registered and validated devices, strengthening access control and mitigating SIM-based attacks. Layered and risk-based authentication: multiple authentication factors are orchestrated according to transaction risk. Independent authorisation for sensitive operations: critical transactions require controls that are not dependent on SIM ownership. End-to-end encryption: ensuring confidentiality and integrity from the client device through to the banking core. A Risk-Based Path to Sustainable Inclusion Financial inclusion remains a strategic priority. However, under ISO/IEC 27001:2022, inclusion mechanisms must be supported by documented risk assessment, appropriate control selection and continuous improvement.As connectivity improves and smartphone penetration continues to grow, regulators and financial institutions have a clear opportunity to progressively transition from SIM-centric models to device-trusted, cryptographically protected digital channels, without excluding underserved populations.The NEARSOFT Digital Banking Platform demonstrates that: "Financial Inclusion, Information Security and Regulatory Compliance are not mutually exclusive. They are mutually reinforcing."

On World Quality Day, we’re excited to announce that Nearsoft has officially achieved the ISO/IEC 27001:2022 certification, issued by Prescient Security, a global recognition of our commitment to information security, trust, and excellence.This milestone reflects the dedication of our team and our unwavering focus on delivering secure, high-quality Digital Banking and eGovernment Solutions.The certification ensures the highest standards of data protection and management across all our key areas:- Software Development- Project Management- Finance- Human Resources- Design- Security/IT- Quality Assurance- Senior ManagementA huge thank you to everyone at Nearsoft who made this achievement possible!

Introduction Digital banking is evolving rapidly. Customers no longer see mobile apps and online banking as simple tools for transactions — they expect a seamless, engaging experience that goes beyond payments and transfers. For banks, this shift opens up a unique opportunity: to use digital channels as strategic communication hubs that build trust, educate clients, and promote innovation. Why Communication Matters in Digital Banking For many years, digital banking was designed primarily around operations: checking balances, making transfers, paying bills. Today, however, digital channels can play a much broader role: Promoting new products and services directly in the app. Providing timely financial education that improves customer literacy. Delivering real-time alerts and security messages to strengthen trust. Encouraging customer engagement with features that increase loyalty. By unlocking these possibilities, banks transform digital channels into a vital extension of their brand and relationship with customers.   Examples of How to Engage Customers Through Digital Channels Promotional Campaigns: Make offers relevant and engaging with geo-targeted promotions, dynamic in-app banners and gamified challenges — turning promotions into experiences customers actually want.Example notification: “You’re near one of our partner stores — pay with your company card and get 5% cashback today!” New Products & Services: Encourage adoption of new features through gamification, micro-tutorials, timely push notifications and interactive assistants — inviting customers to explore and build habits instead of just reading announcements.Example notification: “Travelling soon? Enable your card’s new Travel Mode in one tap for secure payments abroad.” Financial Education: Deliver quick, engaging lessons with short videos, in-app quizzes and progress trackers — positioning the bank as a trusted advisor.Example notification: “Tip of the week: Automate your savings and grow your emergency fund twice as fast.” Online Security: Send proactive, scenario-based alerts, use relatable storytelling and even interactive phishing simulations — strengthening trust and reducing fraud risks.Example notification: “We detected a login from a new device. Was this you? Tap Yes/No to confirm.” The Benefits for Banks Turning digital channels into communication tools delivers measurable results for financial institutions: Higher engagement and product adoptionWhen customers receive relevant, timely and personalised messages, they are more likely to explore and use new features, adopt additional services and interact more frequently with the bank’s digital channels. Stronger customer relationships built on trustTransparent, proactive communication — from security alerts to educational content — shows that the bank cares about its customers’ needs, strengthening loyalty and long-term relationships. Improved financial literacy and reduced service callsBy educating customers directly within digital channels, banks empower them to make better financial decisions. This not only adds value but also decreases routine inquiries and support costs. Enhanced reputation through proactive security alertsReal-time, scenario-based alerts and clear best-practice tips reassure customers, reduce fraud and position the bank as a secure, forward-thinking partner. Digital channels are no longer limited to transactions — they are the future of customer relationships. By embracing communication as a core element of their digital strategy, banks can unlock new opportunities for growth, loyalty, and innovation.   At Nearsoft, we help financial institutions transform their digital channels into powerful tools for engagement and success.Contact us to learn more. Want a quick overview? Check out our social media series: 5 Ways to Unlock the Full Potential of Your Digital Channels – Episode 1