The use of QR codes in the BFSI sector is bolstering. The number of US banks planning to implement QR codes in their operations is set to increase from 12% in 2017 to 60% in 2022. Furthermore, QR code-based mobile payments are projected to grow at a CAGR of 33% by 2025.
QR codes have the potential to revolutionize the BFSI industry by enabling mobile banking, enhancing security, and improving customer engagement and experience.
Banks, non-banking financial companies (NBFCs), fintech companies, and all financial organizations can use QR codes to enhance their marketing and business operations.
Here’s a comprehensive guide to using QR codes for banking and financial services.
The evolving BFSI industry and the role of QR codes
If there’s one industry where technology has created a substantial impact, it has to be the banking, financial services, and insurance (BFSI) sector. Along with rapid tech adoption, various other factors are changing the industry.
To understand the importance of QR codes in banking, it’s vital to first understand how the sector is evolving.
- Accelerating digital transformation: The BFSI sector is undergoing a significant digital revolution. Banks and other financial institutions use technology to enable seamless money transfers, onboard consumers, make services accessible, and provide an engaging experience.
- Increasing competition: With new players regularly entering the market, the BFSI sector is increasingly competitive. Hence, brands must stand out and maintain a competitive edge.
- Rising focus on customer experience and satisfaction: Since the competition is increasing, brands must provide top-notch customer experience and satisfaction.
- Data and analytics: As the BFSI sector becomes more consumer-centric, collecting consumer data and analytics is now a priority. Every BFSI brand wants to collect first-party data to know its consumers better and provide a personalized, engaging experience.
Now, where do QR codes come in?
QR codes have proven their mettle in the BFSI industry by helping organizations make their users’ lives easier and provide a better experience. From providing access to mobile banking and other online services to enabling seamless digital transactions, QR codes have various applications in BFSI.
Overall, QR codes act as a bridge between the offline and online worlds. With a QR code, a digitally-capable device (like a smartphone) can connect with an offline touchpoint (like paper).
How to use QR codes in banking in financial services?
QR codes have many use cases in the BFSI sector. Here’s how BFSI organizations can use QR codes.
Enable QR code-enabled secure transactions
QR codes enable fast and encrypted transactions between two parties. Research shows that QR code payments will reach $2.7 trillion globally by 2025, while the number of users will reach 2.2 billion.
Thanks to QR codes, any brick-and-mortar store owner can collect online payments using QR codes. QR codes enable both wallet-to-wallet transactions as well as direct bank transactions.
Provide a top-notch mobile banking experience
Mobile banking is one of the major trends in the BFSI industry. Payments worth $503 billion were made on mobile in 2020. And with the internet and mobile usage increasing rapidly, various banks and non-banking finance companies (NBFCs) are providing a mobile experience.
QR codes can help BFSI businesses offer a smooth mobile banking experience. Apart from online payments, you can use QR codes to provide account access, leverage internet banking, and more.
Offer an engaging consumer experience
Unlike in the past, banks now need to compete for consumers. And the best way to do that is by offering a personalized, engaging consumer experience.
For instance, you can use a QR code to send users to your website showcasing all the services offered by your bank. You can also use QR codes to provide instant customer support on mobile.
QR codes for KYC and other compliance regulations
BFSI organizations can also use QR codes to conduct Know Your Customer (KYC) and Anti-Money Laundering (AML) verifications. For example, you can use a QR code to send users to a KYC or AML verification form and expedite the process.
Seamless asset tracking
QR codes can help BFSI organizations track and locate physical assets, like checks, credit cards, drafts, and cash. Bank professionals can, therefore, easily track and find lost assets with the help of QR codes.
Marketing and advertising
Like all industries, the BFSI sector can use QR codes for marketing and advertising.
For example, if you’re planning to run a newspaper ad, include a QR code to bring users to your website, mobile app, or other online destinations.
ATM transactions with QR codes
Banks can allow users to withdraw money from an ATM with a QR code. Many ATMs now enable people to withdraw cash and perform other personal banking tasks through QR codes without needing a card.
Benefits of QR codes in the BFSI industry
In the previous section, we discussed the top applications of QR codes in the BFSI industry. Now, let’s look at some significant benefits and reasons for using QR codes in BFSI.
Let’s delve in.
Improved consumer experience
BFSI organizations can use QR codes to instantly share information and services, which improves the consumer experience. For instance, a user coming across your newspaper ad can scan the QR code to reach your website and explore the services.
Streamlined operations
QR codes can help banks and financial institutions automate certain processes and streamline operations. For example, banks can use QR codes to redirect users to the account opening or loan application form. This will eliminate the need for distributing physical forms manually.
Higher accessibility of services
Financial organizations can make their services more accessible with QR codes. You can include QR codes in your advertising materials to bring users to your website, mobile app, and other online destinations and make your services more accessible.
More impactful marketing
QR codes can take your marketing to a whole new level. With QR codes, you can integrate your offline and online marketing channels, creating an omnichannel experience for your consumers.
Omnichannel marketing is way more powerful than single-channel marketing. Omnichannel strategies boost sales by 9%, customer engagement by 3x, customer experience by 60%, and retention by 91% compared to single-channel strategies.
Higher security
QR codes can add an extra layer of security to BFSI operations. For instance, banks can leverage QR codes to authenticate transactions, identify counterfeit documents, and more.
Top banks and financial institutions using QR codes
BFSI institutions across the globe are using QR codes to streamline their services and improve customer engagement. Let’s look at some top brands using QR codes.
US Bank
The US Bank uses QR codes (Zelle® QR code) to provide quick access to account information and allow users to pay bills and make mobile deposits.
Union Bank of India
The Union Bank of India uses QR codes to share its mobile banking app download links and allow users to perform their banking tasks on mobile.
ICICI Bank
The ICICI Bank uses QR codes to allow users to withdraw cash from ATMs without using a debit card.
Wells Fargo
Wells Fargo enables users to make credit card payments by scanning a QR code.
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Kotak Mahindra Bank
The Kotak Mahindra bank lets users transfer funds to other bank accounts by scanning a QR code.
Standard Chartered
Standard Chartered enables users to deposit cash in their bank accounts by scanning a QR code.
Chase Bank
Chase Bank uses QR codes to share discounts and rewards with users who use its mobile banking app.
PNC Bank
The PNC bank uses QR codes to enable users to make contactless payments using their smartphones.
First Republic Bank
The First Republic bank uses QR codes to allow users to deposit checks by taking a picture of the check with a QR code.
How to create a QR code for your BFSI brand?
QRCodeChimp is a QR code generator and management solution that allows you to create and manage QR code campaigns.
Follow these steps to create a QR code with QRCodeChimp.
1. Visit qrcodechimp.com and sign into your account. If you don’t have an account, sign up first.
2. Head to the Solutions tab and choose a solution of your choice. Let’s say you want to create a URL QR code to bring users to your website. In that case, go for the URL QR code.
3. Enter the destination URL in the “URL or Text” field under the Basic Information section. Tick the “Make dynamic” checkbox to create a dynamic QR code.
4. Go to the “Design, Color, and Decorate QR code” tab and customize your QR code using the given options.
5. Click on “Save QR code,” give a name to your QR code, select a folder (optional), and save it.
That’s it. The QR code will be saved in your dashboard.
Final thoughts
Summing up, the BFSI industry is rapidly adopting QR codes for their versatile use cases, ease of use, and ability to transform the consumer experience.
If used well, QR codes can level up your marketing and consumer engagement strategy and help you generate consumer loyalty in this cutthroat financial services landscape. With QR codes, finance companies can enable seamless consumer onboarding and make their services more accessible.
If you want to implement QR codes in your business and marketing, QRCodeChimp can help.
QRCodeChimp is the one-stop solution for banks and financial institutions to leverage the power of QR codes. Our solution offers a comprehensive range of QR code types and management features tailored to meet the unique needs of your business.
Get started with QRCodeChimp today and harness the true potential of QR codes.
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