In the financial sector, it’s easier than ever for customers to feel like they’re little more than a number. It might not seem like there are as many opportunities for “warm fuzzies” in the customer journey as there are in other industries. But with the right tools on your belt, this couldn’t be further from the case.
QR Codes are some of these tools. They can speed up financial transactions, make them more secure, and streamline workflow across the banking sector.
Whether it’s a tiny start-up or an international conglomerate, this technology can transform a business. Let’s explore how QR Codes can boost your customer experience and help your business prepare for future changes in finance.
Why are QR Codes a good fit for the finance industry?
The financial industry handles endless physical and digital assets, and decision-makers have found that QR Code payment solutions and transactions can bridge the gap between the two.
Reduced processing time
QR Codes significantly reduce the processing time of withdrawals, deposits, transfers, and payments, improving the customer experience. In just a few seconds, customers have everything they need to complete a request.
For instance, an ATM generates a QR Code that guides a customer straight to withdrawal without inserting their card. Or, a bank may include a QR Code with a physical bill, allowing customers to scan the code on their mobile banking device and quickly settle up.
Better data security
QR Codes are encrypted, limiting access to the intended recipient and ensuring data remains private if stolen. This is particularly important when customers can bank from anywhere in the world.
So, if a customer initiates a digital payment via a mobile app while in public, their account details and transaction ID are hidden in the QR Code rather than broadcasted to the world. If a merchant scans a QR Code for a gift certificate, they can verify its authenticity via the code’s digital certificate or signature. As digital payment scams increase, QR Codes can be a key player in the fight against crime.
Streamlined banking workflows
QR Codes give people access to relevant information, reducing confusion and unnecessary teller transactions. Customers can use QR Codes to initiate an account opening, pay bills, transfer funds, withdraw money, and schedule appointments. They’re a lifesaver for brick-and-mortar banks and credit unions with long lines.
Banks can also use QR Codes to verify security access. For example, let’s say a manager needs files from another branch. The bank can create a business card with a scannable QR Code that reveals their clearance level.
How common are QR Codes in finance and banking?
QR Codes are common in finance and banking, and like all technology, they’ve evolved over the years across departments. Today, QR Code use across the board has a projected growth rate of 16.9% every year until 2033, and their use in the finance sector continues to expand.
Banks may be equally likely to track the movements of a physical asset (e.g., a contract, check, etc.) with a QR Code as they are to promote a special account for people with 800+ credit scores.
You can also use QR Codes for activities like budget planning and payroll tracking. Any printed material can be equipped with a QR Code to track it back to its origin. Because QR Codes are so versatile, multiple departments can adapt the technology to fit their needs.
3 benefits for financial institutions using QR Codes
Financial institutions use QR Codes because they’re flexible, efficient, and simple. Customers, employees, and merchants typically already know how to scan a QR Code or can learn from a staff member fairly quickly.
But their usefulness extends far beyond their flexibility. Here are just a few other core benefits you can expect when you incorporate QR Codes into your operations.
1. Security
Consider how a physical asset, such as a deposit slip or a bill, is a sitting duck for theft or what information an unencrypted transaction reveals in the event of a successful breach or hack. Encryption is an extra layer of security some QR Code generators like Bitly build into QR Codes that help maintain confidentiality. For example, Bitly QR Codes are encrypted with https.
Instead of trying to prevent all digital theft, encryption changes intercepted data into a string of indecipherable characters—so the criminals are stuck with an unusable asset!
2. Efficiency
Small businesses and individual sellers can use a QR Code to receive funds and track the details of the transaction. Customers can use them to transfer money between accounts and pay for goods and services. Marketers can also use them to increase the success rates of their promotions.
For example, let’s say a bank is offering a special loan at 1% APR to select customers. Its marketing team can send an email and a physical letter to eligible customers detailing the promotion. If the customer deletes the email by mistake, they can use the QR Code on the physical letter to log into the banking app and discover the details.
3. User-friendliness
From cash to paperwork to user verification, banking can sometimes feel like a hassle for some customers. For many, filling out duplicate information every time they make a transfer or deposit isn’t exactly their idea of a great time—particularly if it compromises their identity in the process.
QR Codes improve ease of use by cutting back on all of these inconveniences without compromising security.
Banks can harness them as a part of their Know-Your-Customer (KYC) strategies, allowing customers to quickly verify who they are so they can pay, transfer, or open a new account. Hybrid retail brands may especially benefit from QR Codes, because their business model relies on seamlessly blending the two worlds.
How QR Codes streamline finance operations: Use cases and examples
Financial institutions and organizations apply QR Codes based on their target demographic, services, and packages. We’ll look at how customers, merchants, and financiers take advantage of the available technology
Faster QR Code payments
QR Codes can store up to 3 KB of data, making them integral for faster payments. So, if a merchant uses Dynamic QR Codes, the technology will automatically prefill information related to the sale. This makes it faster and easier to record transaction details without slowing down the process.
Consumers increasingly rely on services like Zelle and Venmo to increase payment options between friends and merchants. QR Codes facilitate these transactions, so people don’t have to share private data to be paid.
Using QR Codes to pay for goods and services is as easy as holding the device near a scanner, confirming the details, and hitting “Submit.”
Easier cash withdrawals or deposits
ATMs that use QR Codes instead of traditional methods are faster and easier for customers. Wherever they are, whether they have their ATM card or not, they can log into the mobile app to initiate a withdrawal or deposit.
Cardless technology is available at several banks in the U.S. and internationally. Typically, ATMs can generate a QR Code for the customer, allowing them to scan from the bank’s app after logging in. For instance, QNB Bank’s ATMs have customers select the card they want to use from the display screen (after logging in and scanning a QR Code) before completing the transaction.
Extra security layers
Traditional ATM transactions can be dangerous on several levels. When both cards and security footage can be stolen or otherwise intercepted, QR Codes eliminate the need for ATM cards and reduce the odds of PIN theft.
QR Codes are also handy for multi-factor authentication (MFA). Instead of sending a code by text or email, which can be cumbersome to input, a scannable QR Code verifies the person’s identity. For instance, if a customer logs in through a public computer, they can use their phone to scan a unique QR Code for identity verification.
Dynamic QR Codes can create a unique link for every customer and every transaction, embedding the link within the code before it’s scanned. Once the device decodes the link, it’s sent to the server for verification.
Banks can build in this technology for transactions that trigger security alerts, reducing the hassle for legitimate customers and thwarting bad actors.
Uncomplicated invoicing
Small businesses, international chains, and individual sellers can use QR Codes for faster payment processing and better record-keeping. When a merchant bills a customer, they can input the price, goods/services, and method of payments accepted.
Customers can scan the code, verify the details, and select their preferred payment method. QR Codes are a way to skip multiple invoicing steps and can easily integrate into a company’s paperless policies.
For instance, a quick-serve restaurant may generate a QR Code on their point-of-sale (POS) display, which the customer could scan to pay from their mobile wallet. A sit-down restaurant might print out every bill with a QR Code. Instead of waiting for the server to come back, the customer can settle the bill (including tip) and be on their way.
Mobile wallet integration
QR Codes can link a customer’s mobile wallet to their bank account, allowing them to make in-person purchases with nothing more than a point and tap! The payment system, terminal, and app communicate through the code.
For instance, a merchant generates a payment request on a terminal display. The screen shows the customer the supported transactions (e.g., PayPal, Visa, etc.). After the customer selects their method, a QR Code populates the screen so the customer can scan and pay.
Or, a customer launches a QR Code from their wallet, and the merchant scans it to send the payment request. (Please note the latter method takes more effort to integrate and may not be compatible with all payment methods.)
The future of finance with QR Codes
The finance industry saw peak QR Code demand during the pandemic, when contactless payments were a must. While the urgency is somewhat in the rearview, the number of smartphone users scanning QR Codes continues, expected to reach 99.5 million in 2025.
We’ll likely see even more physical assets—like paper contracts and marketing posters—equipped with unique QR Codes in the future. Businesses can also use QR Codes to track PDFs for customers and stakeholders alike, allowing them to scan the code to access confidential account details.
We’ll also likely see the loan application process transform, especially because QR Codes can link to prefilled sections (customer name, address, etc.) of the application to make it easier on the applicant. Security will also continue to evolve in the finance industry, as criminals and opportunists experiment and find paths around the rules.
With the world becoming increasingly cashless, QR Codes can integrate with an array of other technologies, including digital wallets, mobile apps, and web pages.
Find out firsthand how QR Codes can redefine finance
QR Codes in finance aren’t just a smart idea for banks like Chase and Wells Fargo— they’re useful for every player.
If you’re looking for a way to implement QR codes in your organization, Bitly’s QR Code generator can quickly create these critical assets. With Bitly, you can link customers to any URL via Dynamic QR Code and track valuable insights like the number of scans, where people are scanning from, and what devices they’re using.
This can help inform business decisions, like optimizing mobile apps for specific mobile operating systems or offering special promotions to attract customers in new cities to expand your reach.
The finance industry is changing quickly. Get started with a free Bitly account to see how using QR Codes can streamline workflows and improve customer satisfaction!