Banks and financial institutions offer great value and convenience to end users. However, they are notorious for being vulnerable to fraudulent attacks such as credit card identity theft. Much has been done in adding layers of security to an individual’s banking experience. Whether it’s two-factor authentication or OTP password-protected transactions, banks and financial institutions have come a long way in securing customer account information and transactions. RFID technology in banks, financial institutions, and fintech companies has benefited from open APIs and the fintech giant’s trends and applications during its transformation.
RFID, or Radio Frequency Identification, is a security system that allows you to identify and track objects using electromagnetic fields. RFID technology in banks and financial institutions is a prevalent option for identity verification, identity theft protection, biometric authentication, and more. These solutions emphasize security at the highest level, make it easier for clients to protect their money and investments, and allow banks and financial institutions to secure their assets and inventory. In addition, RFID technology enhances the productivity of banks and financial institutions by automating many processes.
Enhanced retail customer experience
Maintaining online anonymity and comprehensive identity verification is key to a superior customer banking experience and protection from identity theft. RFID technology in banks and financial institutions provides biometric identification. It is a revolutionary way to verify identity and prevent credit card theft. Moreover, credit and debit cards embedded with RFID chips are very helpful in speeding up your retail payment experience. One no longer has to wait for the cashier to swipe their cards, enter the PIN, wait for the authentication to start, and withdraw the payment. With cards embedded with RFID chips, end users can tap their card on the payment machine, and the entire identity verification process takes place in less than a second. You can then pick up your things and walk out of the store. These RFID chips keep your details confidential and prevent credit card identity theft. Which enhances the user’s payment experience.
Multifunctional retail applications
As RFID technology in banks and financial institutions provides a fast and efficient biometric authentication method, it also facilitates multifunctional applications such as membership and loyalty. Loyalty points received in a particular transaction are effectively sent to the user’s account without following any separate process. Since the identity verification is already done using RFID technology, we know that loyalty points are sent to the correct account. This identity verification also helps with membership processes. Any points to redeem or membership benefits to enjoy can be taken care of quickly with this biometrics authentication process.
RFID technology has also given way to smart fitting rooms. Once a customer tries on a new shirt, the smart fitting room can tell them if the same shirt is available in a different color or size. It can also notify the customer if the brand is offering a discount or offer. Moreover, the customer can also get recommendations on the outfit that matches the shirt, the brand that offers such jeans in the store, and whether it is available now or not. Smart fitting rooms also allow employees to secure their assets well. Moreover, people who take clothes to the fitting rooms will not be able to steal them. Therefore, RFID solutions help mitigate the chances of shop theft.
Asset Tracking Using RFID Technology
The management of cash and other assets is critical to achieving consistent performance for the bank and for the bank to deliver a smooth banking experience to its customers. RFID tags on mail bags, checks, cash, and more are a great way to keep track of them and make sure your inventory is up to date. These RFID tags help monitor movement and identify each of these assets and ensure that no tampering has occurred.
Automated teller machines, vaults, cash sorters, and other important assets of a bank that need systematic protection. RFID technology can also be used in banks and financial institutions here. Maintenance of all these assets and regulatory compliance can be successfully managed with RFID tags. This way, the process does not require that it be performed manually. These RFID tags not only help increase resource usage, but also provide increased productivity. Hence, RFID technology is slowly replacing the previously implemented barcode scanning method for inventory preservation.
Badges, ID cards, laptops, computers, safe deposit boxes and digital databases can be secured by applying RFID chips. Thus, with biometric authentication, one can ensure that only authorized persons have access to these assets. Banks and financial institutions can protect their physical and digital assets. Hence, establish a strong access control.