RFID application in Banks
Submitted by jeffrey on Sun, 2007-03-25 12:09.
Tags: banks | Loan processing
RFID technology companies are applying the technique to new sectors. RFID is now used in banks to track files! We all think that we are moving towards a paperless world but the importance of paper has not ceased. Majority of banks still want loan applications and supporting documents in paper format. The loan applications move from department to department before the application is approved or rejected. Once, approved more people are involved for collecting the interest and principal from the customer. Legal and tax departments too are involved. The banks’ insurance company and the local administration can also want to have a look at the files. The file would finally be stored in a storage room at the bank head office. Under this scenario, it becomes difficult to track the location of the file. Bank employees waste huge amounts of time in determining who of their colleagues is in possession of a particular file or is the file already sent to head office store room.
Hypo Landesbank Vorarlberg, a leading Austrian bank, faced exactly above problem. The IT department of the bank, with assistance of their IT vendor, thought of an innovative solution. They tagged about 30,000 files with Passive RFID tags. Each file now thus had a unique identity number. Next, they installed RFID readers on th desk of key employees who might handle the files. Whenever, the file is taken by any of this 32 employees, the reader reads the tag. It then associates the file with the particular employee. Any other employee, who is in need of the same file, logs on to an online system and enters customers account number. System immediately displays the current owner of the file. Also the system displays a map and direction to the concerned employee’s (one who has the file) office.
Technorati Tags: banks# Loan processing# #
Tags: banks | Loan processing
RFID, as we all know is now a recognized technology used by variety of industry for tracking a variety of assets. But the majority of the use is to track movement of items from manufacturing companies, to warehouses and to retail outlets.
Problem in Banks
RFID technology companies are applying the technique to new sectors. RFID is now used in banks to track files! We all think that we are moving towards a paperless world but the importance of paper has not ceased. Majority of banks still want loan applications and supporting documents in paper format. The loan applications move from department to department before the application is approved or rejected. Once, approved more people are involved for collecting the interest and principal from the customer. Legal and tax departments too are involved. The banks’ insurance company and the local administration can also want to have a look at the files. The file would finally be stored in a storage room at the bank head office. Under this scenario, it becomes difficult to track the location of the file. Bank employees waste huge amounts of time in determining who of their colleagues is in possession of a particular file or is the file already sent to head office store room.
The solution
Hypo Landesbank Vorarlberg, a leading Austrian bank, faced exactly above problem. The IT department of the bank, with assistance of their IT vendor, thought of an innovative solution. They tagged about 30,000 files with Passive RFID tags. Each file now thus had a unique identity number. Next, they installed RFID readers on th desk of key employees who might handle the files. Whenever, the file is taken by any of this 32 employees, the reader reads the tag. It then associates the file with the particular employee. Any other employee, who is in need of the same file, logs on to an online system and enters customers account number. System immediately displays the current owner of the file. Also the system displays a map and direction to the concerned employee’s (one who has the file) office.
The system was an instant hit at the bank and is now in used for about 4 years. To locate the files kept in big store rooms, the bank is now planning to buy handheld RFID readers. The system is a great learning opportunity for the entire banking and finance sector.
Technorati Tags: banks# Loan processing# #