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.

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.

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.

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.

Since their establishment, legacy financial institutions and their methods have fared very well. However, with the evolution of technology and the adoption of digital transformation, the financial services industry has come a long way. When technology was fused with finance, the change was considered revolutionary enough.

New technologies like Cloud computing, Blockchain technology, Machine learning, Artificial Intelligence, Quantum Communication, RFID technology, Biometric recognition, and several others are coming into the picture. It is crucial to learn how they are transforming the financial services industry and why they are beneficial for the end-users. Banks and fintech enterprises are benefitting from open APIs and fintech megatrends and applications can be further explored. Let us dive more in-depth and have a closer look at the top five technologies transforming the financial services industry.

RFID or Radio-frequency Identification is a technology using which digital assets (data) are encoded and then automatically identified using track tags. The RFID technology has become a crucially vital protection layer used by numerous financial institutions, payment providers, and central banks to safeguard their digital assets. RFID protection is being implemented to protect servers, sensitive and classified company and customer data, laptops, hard drives, and other equipment.

Using RFID security helps these financial institutions automate numerous inventory processes, keep track of their fixed assets, increase capital visibility, boost efficiency and productivity in asset management, and remove errors due to reduced human judgment. RFID system components are also being used by banks to safeguard courier bags in which hard cash or sensitive documents are transferred from one location to the other. Plus, RFID chips embedded in credit or debit cards can even allow customers to make payments by tapping the card without having to swipe it through or wait for systems to come online.

It has been quite a few years since machine learning and artificial intelligence have been associated with finances. These were among the first technology integrations to take place when it came to the financial services industry. Even though it has been an innovative step towards a transformed future, machine learning and artificial intelligence have a long way to go into creating something revolutionary and game-changing. However, both these technologies have still made quite a lot of difference in the scene.

Fraud prevention using biometric recognition is one of the most crucial advances provided by machine learning and artificial intelligence. Now, along with using OTPs and passwords, customers can also use their fingerprints or facial prints to add additional layers of protection. Artificial intelligence has also enabled financial institutions to carry out risk management and fund prediction, thus becoming essential financial tools for business decision making.

Another crucial application of artificial intelligence as financial tools is the utilization of Robotic Process Automation. There’s no hiding the amount of paperwork and manual processes that take place in a financial institution. These redundant yet essential processes can be taken care of by Robotic Process Automation. Whether it is the maintenance of regulatory documents, extraction of summaries from lengthy business documents, or collecting statistics and numeric values, Robotic Process Automation is a blessing. Plus, since these financial tools eliminate resource wastage and boost productivity, they not only serve as great financial tools to start a business but also as financial tools for business decision making

Cryptocurrency and Blockchain technology, in general, have been under a lot of scrutinies, especially from legacy financial institutions. However, people all across the globe are slowly and gradually adopting cryptocurrency. This has also caused several financial institutions to consider blockchain technology and use it as a sort of regulatory means because of its decentralized nature.

Shortly, blockchain technology is expected to further the cause of transformation of the financial services industry and be used to revolutionize digital and contactless payments, loan authentication and processing, escrow services, and more. Blockchain technology will also be crucial to automate numerous processes bound by regulatory compliance standards.

The most typical queries customers have related to financial services are, in fact, straightforward and repetitive. “How can I block my stolen credit card?” “How can I unblock my card?” “How do I access my online account?” “Where is the nearest ATM?”. “Where is the nearest bank branch?” “How can I start a fixed deposit?”. Instead of a human replying to them every time, conversational banking can help automate the replies to such questions.

By using artificial intelligence and machine learning to create Internet bots or Chatbots, financial institutions can do a lot. They can quickly answer the most simple and common customer queries, walk them through the complete registration process for a service, teach them how to make transactions or withdraw money, and even serve as advisors to track their budget and spending habits. This not only adds ease and convenience to the customer’s life but also optimizes customer experiences.

With increasing usage and flourishing trends of conversational banking as a personalized customer service assistant, the financial services industry will need to hire more neuro-linguists, AI programmers, and voice recognition experts. In the next few years, we’ll also be looking at developing hybrid AI-human models that will give enough control to Internet bots but also enable human agents to step in when required quickly.

Drop us a line at info@ndngroup.com to learn more about how our technologies help expand your business in the era of fintech.

Financial technology, or FinTech for short, is one of the most exciting and fastest-growing areas in global business today. Fintech is beginning to disrupt the financial world. The financial industry is now more focused than ever on technological innovation than at any other time.

Blockchain, Artificial Intelligence (AI) and Machine Learning are some of the most used technologies in FinTech, offering the potential to play a bigger role to support banks, financial institutions, fintech startups, ventures and enterprises.

FinTech has shifted towards consumer-oriented services and various sectors such as retail, insurance, education, fundraising and many more. Fintech gives birth to Digital Wallets, Peer-to-Peer (P2P) lending, Crowdfunding, Mobile Banking and Biometric Recognition.

Nowadays, customers desire a fast, easy-to-use and seamless payment experience. Digital payment allows users to pay for purchases worry-free with no hassle.

With digital wallets, users can make a mobile payment, proceed transactions and money transfer between bank accounts. Users can also store the details of their credit or debit cards in the wallets and make payments in retail shops and restaurants safely. They can even make onsite merchant payments and pay bills smoothly and securely. Some digital wallets enable users to store money in the form of cryptocurrencies.

Meanwhile, consumers can receive special offers, rewards, and discounts through their digital wallets and use reward points at checkout. Many consumers are in favour of a digital wallet that integrates loyalty programs that can be used at multiple merchants. As customers’ data are encrypted in digital wallets, their personal data storage is highly secure even though they lose their mobile phones.

Mobile banking is a means for customers to monitor banking accounts and make transactions from their smartphones in the Fintech. Banks, financial institutions or fintech companies let their customers utilize mobile apps and so they can check deposits, account balance and more from smartphones.

Customers can transfer funds from their bank account to another account with a smartphone, from anywhere to everywhere. They can also pay bills, check account balance, statements, get alerts, study recent transactions, cancel ATM or credit cards.

Mobile banking enables customers to enjoy banking services close at hand, thereby taking care of financial chores and saving time. There is no need to go to a bank or ATM and wait for the bank to open to check account balance. Some mobile apps curated by banks enable customers to manage their fund investment and digital money in a bid to improve customers’ daily financial decisions.

The mobile banking appeals to customers with its speed, convenience and highly personalized real-time banking experiences. Customers can revel in personal banking services by tapping on the mobile banking apps and “middle-man” intervention are eliminated to speed up the transaction process.

An entrepreneur may think that they can only raise capital from investors, capitalists and banks outside of their own networks. Yet crowdfunding is a great way to allow entrepreneurs to raise funds from the community in exchange for their products and services and fund a venture.

To get started on the crowdfunding path to funding and exposure,  entrepreneurs need to contact the chosen crowdfunding platform that best suits their campaign missions, values, purposes and shares their ventures’ messages. Crowdfunding not only allows entrepreneurs to present a business and product, but also gives them the ability to share the message behind it. People who view the entrepreneur’s campaign and are dedicated to making financial contribution strongly believe in the success of the venture in the long run.

Crowdfunding is an excellent way for entrepreneurs to receive the financing and exposure they need in order to help their ventures grow and succeed.

FinTech has fostered the development of the innovative peer-to-peer (P2P) lending model. P2P lending is ideal for individuals who want to avoid the high-interest rates on traditional bank loans and have flexible terms and a fast and convenient application process.

Most P2P platforms have a waiting list of investors to provide loans to borrowers and when the platform is combined with an automated matching process, it means turnaround time on getting money can be very quick.

P2P lending platforms eliminate the “middleman” or intermediaries and directly connect borrowers with potential lenders. Borrowers can often access loans with interest rates lower than they could obtain from traditional lenders like banks. Because peer-to-peer loans are unsecured, there is no need to provide any collateral, so borrowers do not need to tie any personal property to the deal, as is the case with many other types of borrowing.

Also, lenders may earn returns which is higher than the income generated through banks’ savings and investment vehicles. Also, they have access to flexible terms that allows them to add and withdraw funds easily, provided that there are other lenders available to replace them in the loans they wish to withdraw from.

Safeguarding customers’ data security and privacy are the main concerns that need to be addressed with technological advancement. More banks, financial institutions and businesses are coming up to provide convenient biometric authentication processes to customers.

Biometric identification can be achieved on a mobile device via its built-in biometric sensors. High-end mobile devices have already embraced the facial recognition technology which is based upon measuring users’ faceprints to grant access to their accounts.

Also, more banks and businesses have already adopted Touch ID in their mobile banking apps. Biometrics such as thumbprints and facial recognition enables users’ biometric authentication and boost security to financial transactions.

In conclusion, Fintech is one of the most fastest-growing areas in global business. The launch of mobile banking can hugely reduce customer acquisition cost and operational costs as well as improve revenue for banks. Banks, financial institutions and ventures stand to benefit from the use of mobile wallets, digital payment, peer-to-peer lending and crowdfunding.

Explore more how NDN Group’s Fintech solutions can help your enterprises suit your customers’ needs and meet your business goals. Drop us a line at info@ndngroup.com to learn more about how our innovating technologies help expand your business.