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What Can RFID Do in Banking Industry?

RFID bank card

For a long time in the past, the banking industry has grown up in a lack of competition, and has developed a set of traditional operating systems and operating procedures. However, in the face of more flexible and newer technology, this old model inevitably appears a bit rigid and inefficient.
Therefore, in recent years, major banks have been positively introducing communication technology, cloud computing, big data and other technologies to promote their own digital transformation. In this process, RFID (radio frequency identification) technology has become one of the important forces driving the digital transformation of the banking industry, and has penetrated into many aspects of the bank’s daily operations, such as cash box management, asset management, file management, bill anti-counterfeiting, and so on.

In the final analysis, RFID technology can meet the bank’s demand better for asset management security and greatly improve the bank’s internal management level. It is for the above reasons that the enthusiasm of the banking industry to introduce RFID technology continues to rise.

1. The introduction of RFID technology brings more efficient management methods

For many scenarios in the banking industry, the introduction of RFID technology has changed the traditional management methods to a large extent, shifting the way of work to digitalization, and making operations more efficient and reliable.

Take cash box management in the banking industry as an example. Traditional cash box management generally uses manual operations, which is not only inefficient, but also very opaque in information, which makes asset monitoring and management very inconvenient. It is understood that in the past, in the transfer of the cash box of the bank money transport truck and the process of the cash box storage, there were always cases of fraudulent collection and embezzlement from time to time.

Therefore, more and more banks are beginning to use RFID technology to manage cash drawers, and realize the integration of “management, control, and operation” of cash drawers through RFID wireless data reading and tracking functions.

RFID tags are installed on the cash box, and the RFID tag can be automatically identified and recorded by the reading device during the cash box’s exit, storage, and branch handover process, and the data can be written into the information system. At the same time, with the help of the RFID system, it can also realize the dynamic traceability of the cash box, knowing whether the cash box is in the warehouse, on the way, or at the branch.

After using RFID technology, it can greatly reduce the labor intensity of related work, reduce the time for the cash box to enter and exit the warehouse, and improve the work efficiency. It can realize unified management, which helps reduce risks and reduce the possibility of human error. In addition, RFID technology also has the advantages of real-time check, recordability, inventory, and traceability, which greatly promotes the automation and intelligence of management.

At present, China’s large commercial banks have achieved centralized management of national data, and have their own large data centers. These data centers are equipped with a large number of IT equipment, and the operation and maintenance of the equipment is not small. RFID technology is undoubtedly the best choice for these large number of equipment management with consistent appearance.

Some banks use RFID technology to add RFID tags to fixed assets such as bank data center cabinets and their internal equipment, install RFID identification equipment at the entrances and exits of the data center computer room and inside the cabinets, and customize monitoring software, automatic alarm systems, and access control systems in combination with the computer room environment. To build a complete asset management and monitoring platform to achieve comprehensive visual tracking and monitoring of IT equipment, which greatly facilitates the management efficiency of IT equipment for data center managers.

2. RFID technology penetrates into all major links of bank operation and management

Banks’ business types are complex, involve large amounts of property and data, and have high requirements for security, and this demand happens to have a high degree of compatibility with the technical characteristics of RFID.

Although the banking industry has a high degree of acceptance of RFID technology, when different banks introduce RFID technology, they will still apply it in different links according to their own needs.

Many banks will add RFID chips to the deposit receipts to improve the anti-counterfeiting capabilities of the bills. With the built-in RFID chip, the bank can effectively distinguish the authenticity of the certificate of deposit, and then combat fraud by criminals.

A bank fully adopted the new large-denomination certificate of deposit using RFID technology. The certificate of deposit added anti-counterfeiting holographic label hot stamping technology and RFID chip technology, reaching an advanced technical level in anti-counterfeiting, with strong anti-counterfeiting ability, high technology content and reliability. Three characteristics of good performance, effectively guarantee the safety of customers’ funds.

There are also many banks that have adopted the intelligent management system of bank credit archives based on RFID technology to realize the electronic information intelligent control and management of the whole process of registration, document circulation, filing, lending, return, destruction, inventory, reminder, and anti-counterfeiting of warrants. .

In the bank loan business, in order to avoid risks, it is often necessary to manage a large amount of collateral. The collateral management system based on RFID technology can effectively prevent the occurrence of financial cases, realize the full life cycle management of collateral storage, maintenance, inventory, and allocation, and conduct real-time monitoring of important collateral.

Some banks apply RFID technology to VIP customer management and provide VIP customers with exclusive VIP UnionPay cards with built-in RFID electronic tags. When the VIP customer arrives at the bank, the active reading device and one-way antenna can detect the VIP customer. Once VIP customers enter the bank’s door, their personal information, including their name and recent transactions, will be immediately retrieved from the tailor-made application software database.

For banks, it is an inevitable choice for development to improve service capabilities and levels through the introduction of Internet of Things technology, and RFID is an excellent way for the banking system to become informatized.

However, judging from the current status, the banking industry’s application of RFID technology is mostly in some closed scenarios. Although it can effectively improve the efficiency of specific business links, the degree of data management is not too high. Therefore, if the separation between some links can be opened up, the advantages of RFID in data management can be brought into play to a greater extent.

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