Banks and financial institutions offer tremendous value and convenience to their end-users. However, they are notorious for being prone to fraudulent attacks such as credit card identity theft. A lot has been done in adding layers of security to a person’s banking experience. Whether it’s two-factor authentication or OTP protected transactions, banks and financial institutions have come a long way in securing their customer’s transactions and account information. Banks, financial institutions, fintech enterprises have been benefitting open APIs and fintech megatrends and applications while financial services industry has been transformed.
RFID or Radio-frequency Identification is a security system that enables you to identify and track objects using electromagnetic fields. RFID technology is a powerful option when looking at identity verification, identity theft protection, biometric authentication, and more. These solutions ensure top-notch security and help customers protect their money and investments and enable banks and financial institutions to secure their assets and inventory. Plus, RFID technology helps boost the productivity of banks and financial institutions by automating numerous processes.
Enhanced customer retail experience
Maintaining anonymity on the internet and thorough identity verification is crucial to superior banking and customer experiences as well as identity theft protection. RFID technology provides biometrics identification, a revolutionary way of identity verification, and prevents credit card identity theft. This smart method of identification and authorization of transactions also enables end-users to experience a seamless banking process. You no longer have to get redirected to multiple online payment gateways for the transaction to be processed. A simple biometrics identification via RFID technology is enough to identify the user and authenticate the transaction.
Moreover, credit cards and debit cards embedded with RFID chips are immensely useful in speeding up the retail payment experience. One no longer has to wait for the cashier to swipe their cards, enter the PIN, wait for the authentication to take place, and the payment to then pull through. With cards embedded with RFID chips, end-users can tap their card on the payment machine, and the complete identity verification process takes place in under a second. You can then pick up your purchases and walk out of the store. These RFID chips maintain the anonymity of your details and prevent credit card identity theft and enhance the user’s payment experience.
Multifunctional retail applications
Since RFID offers a quick and effective biometrics authentication method, it also smooths out multifunctional applications such as loyalty and membership. Loyalty points received on a particular transaction are effectively transferred to the user’s account without any separate process to be followed. Since identity verification has already been conducted using the RFID technology, we know that the loyalty points are deposited in the correct account. This identity verification also helps with membership processes. Any points to be redeemed or membership perks to being enjoyed can be quickly taken care of using this biometrics authentication process.
RFID technology has also given way to smart fitting rooms. As soon as the customer tries on a new shirt, the intelligent fitting room can let them know if the same shirt is available in a different color or size. It can also let the customer know if the brand is offering a discount or an offer. Moreover, the customer can also get outfit suggestions as to which pair of jeans would go well with the shirt, which brand offers such a pair of jeans in the store, and if it’s in stock right now or not. Smart fitting rooms also enable the staff to secure their assets well. People taking clothes into the fitting rooms won’t be able to steal them. Therefore, RFID technology helps reduce the chances of shoplifting.
Asset tracking using the RFID technology
Management of cash and other assets is crucial for a bank’s steady functioning and for the bank to provide a seamless banking experience to its customers. RFID tags on courier bags, cash, cheques, and more are a great way to keep track of them and ensure that the inventory is up-to-date. These RFID tags help monitor the movement and identification of each of these assets and ensure that no foul play takes place.
ATMs, vaults, cash sorter machines, and more are critical assets of a bank that need thorough protection. The RFID technology can be utilized here as well. The maintenance and regulatory compliance of all of these assets can be effectively managed with RFID tags. This way, the process doesn’t need to be carried out manually. These RFID tags not only help boosted usage of the resources but also give a boost to productivity. The RFID technology is slowly replacing the previously used barcode scanning method of maintaining inventory.
Badges, identity cards, computers, laptops, safety deposit boxes, and digital databases can be secured using RFID chips. Thus, via biometrics authentication, one can ensure that only authorized personnel have access to these assets. This way, banks, and financial institutions are not able to protect their physical and digital assets and establish robust access control. Still, they are also able to carry out efficient personnel tracking.