RFID in Banks

Benefits of using radio frequency identification (RFID) in banks would be high level client service and help prevent credit card fraud. RFID is a small chip that can contain information about a bank's client and can be implanted in a passbook or credit card.

RFID Banking Scenario by IBM: [1]

1. RFID fitted into customer's passbook or bank card.
2. When entering bank, card alerts a customer information system.
3. Bank staff would be alerted of high net wealth customers and service them accordingly.
4. Information at teller's screen would allow them to greet customers by name and have account information ready.

RFID in Payment Programs

RFID in banks is already a reality in payment programs such as the Oyster Transport Card in London, UK, the Octopus Card in Hong Kong and the MasterCard PayPass programme in the USA. [2] How it works:

1. Card is held over a recognition unit.
2. Payment is taken without a signature or PIN.

However, items such as privacy concerns and radio frequency interference are issues that will have to be addressed.

Resources:
1. IBM Financial Services
2. The Banker

More information about RFID:

Information Technology for Banks

Banking Technology - Resource for Banks and Financial Institutions
Online resource on information technology solutions for banks and financial companies. Buyer's guide to banking applications, crm, risk management systems and more.

Authentication

Authorization

Security

Servicing