Busted: Bankers and The Global Economy

January 24, 2008

New World Banking Planned for Finance

Filed under: banking, money, politics, RFID, security, tracking — Tags: , , , , , , , — digitaleconomy @ 8:40 am

Radio Frequency Identification (RFID) technology has the potential to impact how every organization operates and how every person runs their daily life. RFID is becoming the catalyst that transforms entire marketplaces. We are looking at the same within the banking and finance industry. How will RFID impact the finance and banking industry? Are banks ready for RFID? A better question might be whether customers are ready. A recent example of RFID use within the industry is the adoption of RFID Credit Cards promoted by Visa.

In the banking industry, technology can be easily used to provide additional customer service beyond credit and debit transactions. RFID can be used to help banks to identify individual customers to be served more effectively. The system involves embedding a RFID device in a customer passbook, loyalty card or using an existing RFID credit card. The device can be easily scanned as the customer enters the bank within the wallet or purse. If the RFID indicates that a preferred customer warrants personalized special service, the system can send an instant text message to a bank manager’s phone and advise the manager of the preferred customer. Customers can be identified again as they walk up to the teller window or as they drive up to the drive-up window. Bank balances could be automatically displayed on the teller’s computer screen in response to the RFID chip data of the customer. The system could be linked to the bank’s customer relationship management software, where the customer’s personal information and preference is stored, including how the person would like to be addressed and a history of the customer’s recent interactions with the bank. The banking industry considers that the profile of people that typically enter bank branches are high net-worth clients looking to do more complex transactions. RFID can be used as a bridge between digital electronics and the personal touch.

RFID can also be used to do the typical sourcing of files, attaching digital to physical storage of information and keeping computer files of secured documents. The system could be integrated to a smartcard verification system, where information can be verified and stored. A photo of the requester could be displayed on the screen for a visual confirmation by a bank officer. The system could keep an audit trail of all transactions and their time stamps. The RFID system enhances and streamlines the process of managing, tracking and tracking document assets of the bank securely and quickly. The system is designed to be combined with other security systems to provide comprehensive detailed document protection combined with employee identification systems using smart cards, fingerprint sensors or RFID tags. Every computer transaction and page view can be stored and audited if needed.

In the last few years, mobile phones companies have started making mobile phones with RFID devices and readers built into them. The technology being employed is called the Near-Field Communication protocol. 50% of new mobile phones are expected to have this new technology embedded in them by 2009. A user could easily access banking and other services using secure technology on his or her personal phone. The user simply needs to touch a screen to share information or by bringing two devices close to each other. The RFID within the mobile phone could be used as a credit card for payments. Even now, these changes are in motion and will be ready for application in your everyday financial and banking experience. Europe has been especially excited by the possibilities and several banking expositions are planned on the subject over the next year or so to prepare the push in technology. The banking world is preparing to enter a new world of linked digital technology. ~ E. Manning

Cebit: Banking in 2012

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