Banks and financial institutions offer convenience and value to their end users. However, at the same time, they are prone to different types of fraudulent attacks like credit card identity theft. As such, many measures have already been adopted for the purpose of adding layers of security to people’s banking experience. One of these solutions is the integration of RFID systems into the processes and procedures of these banks and financial institutions.
Indeed, the adoption of RFID in the banking industry is currently increasing at a steady rate. This increase is being driven by the rising demand for efficiency, transparency, and cost-saving opportunities that RFID technology brings to banks and financial organisations.
To better understand why RFID is currently in demand in the financial sector, read on as this article discusses the different applications of the technology in banks and financial institutions.
Improving customer retail experience
Thorough identity verification and maintaining anonymity are key to premium banking and customer experience, as well as identity theft protection. This is where the benefit of RFID principally comes in. The incorporation of RFID into banks and financial institutions provides biometrics identification that ultimately improves security and customer retail experience. It is a breakthrough measure for identity verification and is effective at preventing credit card theft.
Furthermore, debit and credit cards embedded with RFID chips are quite useful in hastening the retail payment experience. With this technology, one no longer needs the cashier to have their cards swiped, enter their PIN, and wait for the start of authentication and the processing of payment. With RFID-embedded cards, end users can simply tap their cards on payment machines, and the whole identity verification procedure occurs in under a second. This ultimately enhances the users’ payment experience.
Multifunctional retail applications
Because the use of RFID in banks and financial institutions provides a fast and effective biometrics authentication process, it also streamlines multifunctional applications like loyalty and membership. Loyalty points received on a particular transaction are accurately sent to the users’ accounts without any distinct process to be followed. Because identity verification has already been made with the use of RFID, retailers can be assured that the loyalty points are sent to the right account.
This identity verification measure also assists banks and financial institutions in membership processes. Any membership benefits to be enjoyed or points to be redeemed can be quickly taken care of using the biometrics authentication procedure. With its great identification and authentication capabilities, it comes as no surprise that RFID for inventory management is in demand in retail as well as in the financial sector.
Efficient asset tracking
The management of cash and other assets is essential for the steady functioning of a bank and for it to be able to deliver a smooth banking experience to its customers. RFID tags on cheques, cash, courier bags, and the like are an excellent way to keep track of them and make sure that the inventory is updated. These RFID tags assist in monitoring the movement and identification of every asset to ensure that no foul play ever happens. Hence, RFID can be a superior asset-tracking system for banks and financial institutions.
Cash sorter machines, vaults, and ATMs are examples of essential assets of banks that require systemic protection. The benefits of RFID can also be applied here. The maintenance of all these assets, as well as regulatory compliance, can be efficiently managed with RFID tags. This procedure does not need to be conducted manually. The RFID tags not only help augment the use of resources, but they also provide an increase in productivity.
Overall, the use of RFID is a very effective method that can help banks and financial institutions improve their security, boost their efficiency, and provide a better experience to their customers. Today, banks and financial institutions are increasingly using this technology to add an extra layer of protection against potential threats to their transactions and processes. Ultimately, with the use of RFID technology, banks and financial institutions can protect their digital and physical assets better, thereby establishing strong access control.