This article is about IoT for Banking and Financial Services and its overview. The key value in IoT is the transfer of data, and the banking and financial sector depends heavily on gathering and analyzing data. So, it’s difficult not to imagine IoT disrupting the banking and financial services industry.
The IoT is generating a large amount of data, which is currently retained in vertical silos. However, a true IoT is dependent on the availability and confluence of rich data sets from multiple devices, organisations and verticals which will usher in the next generation of IoT technology.
Scopes of IoT for Banking and Financial Services
- IoT has got the potential to completely change the way banking and financial services sector works. Since the banking industry deals with massive data transfer, gathering and analysing of data, the IoT has a huge impact on it which benefits both the banking services and customer.
- The IoT is the largest technological transformation clamming 2nd major digital revolution. The IoT for financial services is to help a consumer to save time, work smarter and to live a more active lifestyle.
- The IoT for banking and finance sector is still on a planning stage but there is an immense scope of innovation in it. IoT helps a bank in every aspect, starting from an increase in revenue to better customer services.
How can IoT help the Banking and Financial Services?
In a very short period of time, we all get empowered by connected devices like smartphones, censored devices and wearable technology in our home, work and public places. This’ll helps the consumer to save time, work smarter and live a healthy and active lifestyle. But for business, there are multiple benefits from IoT. Industries like Banking, Insurance and Finance have rapidly embraced the benefits of IoT innovation.
Let’s see the benefits
Management and Product Planning – IoT technology banks can launch better and targeted service offerings. It will help the banking industry to analyze what product to launch? And also helps to decide the right time for launching the particular product.
Personalized Marketing – Personalized marketing is the better way to retain the customer in a competitive market. IoT technology has made it possible to keep a track of every consumer activities for the bank and offer a product and services as per their requirement.
Cyber Security – With the growing internet banking the security is a key challenge for any banking sector. The IoT technology make sure that the whole banking experience should be safe and secure. The IoT technology enables that the customer personal data to financial data potentially kept secure on the moving network.
Customer Relationship Management – IoT can help the banks to analyze their present economic condition and offer services to the customer as per requires from time to time. This will grant to maintain a healthy relationship with their customer and better customer experience.
Proactive Services – IoT technology made it possible for the banking and financial industry to detect any service fault and bring it to the notice of bank to handle the issue before it becomes too serious. With IoT technology even bank can also track the past activities and customer behavior. So, any unusual activity in the account of customer comes into banks notice.
Data Analysis – IoT technology in banking and fiance industry collect data through mobile apps and digital sensor. Almost all banks have the mobile applications for banking that provides data at a large scale which helps the banking and financial industry to analyze customer behavior and requirement and helps in the decision-making process of business.
Digital sensors are one of the major source of collecting customer information through ATM’s and other automated devices placed physical units to analyze customer behavior which in turn help the banks to come up with new ideas to serve the customer with potential.
Visa Mobile Location Confirmation – It is an service for consumers which offered through mobile banking applications. The service uses customer mobile location in real time as an additional input into visas predictive fraud analysis. For example, if the cardholder mobile location is same as the payment transaction location, the issuing bank confidently approve the transaction.
Alfa Bank Sense – It is an advanced mobile bank application which predicts the real-time customer financial behavior and offers the product or services the customer might need at that time. This IoT application is more personalized than any other mobile banking application and communicates like the other social media messenger does.
Groceries by Master Card – It is an IoT application that allows effortless purchasing of Groceries. The purchase is provided by fresh direct and Shop rite e-commerce platforms.
Banking on Wearable – Wearable devices have been the easy win for the banks. Most of the banks started providing an application for popular wearable devices like apple watch and fit pay. Few banks have also launched their own wearable device which allows contact less wearable payment solutions.
Integrating IoT solutions in Banking and Finance is going to be essential to match with the increasing needs of the digital world. If you are willing to digitize your Banking Industry, then IoT should be your first choice.
Contact us to know more about IoT Banking Industry solutions and we also provide IoT services like IoT Finance Training, IoT Banking Customization, IoT Banking Support and IoT Finance Staffing.