Banking · Case Study
A Neobank Migrates Eight Million Customers to Passkeys
Passkey enrollment, phased recovery flow, and OTP fallback combine to materially cut account-takeover losses.
The neobank's account-takeover losses were concentrated in OTP-intercepted authentication events. The team designed a phased passkey rollout - opt-in for the early cohort, opt-out for engaged users, and OTP fallback for the long tail - with explicit cross-device sync from day one.
Within two quarters, passkey enrollment exceeded internal targets and account-takeover losses fell sharply on the migrated cohort.
Outcomes
- ▍Sharp drop in account-takeover loss on migrated cohort
- ▍Reduced OTP cost and SMS-pumping exposure
- ▍Higher login conversion on returning users