What is IoT in Banking?
The Internet of Things (IoT) is spreading like wildfire across different industries. Even banks are now exploring opportunities to determine the role of IoT in banking. Financial institutions plan to spend $153.5 million by 2018 to monitor financial products and customer status and experience.
Besides that, banks plan to hire experienced analysts to identify the required data and understand how it can be gathered. The focus is to take advantage of the latest technological innovations to deliver better services. Those starting up may also work with people in Fintech compliance to design their compliance and risk management policies.
Connected devices offer access to detailed financing data, giving financial institutions a clear view of the financial picture and enabling them to monitor customer activities and behavior. Mobile applications can help enhance customer experience and allow customers to seamlessly make “connected” secure payments.
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IoT technology can bring about a complete transformation in the banking industry. Banks can leverage IoT to enable customers to conduct transactions using smart home controllers or home appliances.
Technology can make payment transactions easier, enabling banks to collect and make payments through cars, except for fuel, parking, and toll.
Wearables and Sensors
Customers can employ wearables to perform basic operations. Wearables may even replace mobile phones and become easier modes of conducting transactions.
IoT sensors give you relevant information on product performance. With manufacturing control and shipping sensors, financial institutions can upgrade underwriting processes. This makes it possible for banks to capture new markets and monitor the conditions of retail businesses.
Equipped with Wearables or Sensor technology, new video tellers and kiosks can biometrically recognize the customer from the point of entry.
Other IoT in Banking Benefits
IoT devices will give banks a more detailed picture of the customer. By employing IoT solutions, financial institutions can create rewards for clients in order to generate cross-sell possibilities, and offer better customer experience.
Additionally, with IoT, banks can obtain real-time data on credit behavior, expenditure, and residential and commercial premises.
IoT in Banking Security Issues
Security is a big challenge for financial institutions with the introduction of IoT solutions. The prime focus of banks should be to provide safe, connected banking experience for consumers and win over their trust by offering complete security to personal data.
Banks should take steps to protect data with the help of smart solutions, such as biometric data verification and encryption, and win customer trust.
IoT offers numerous opportunities to the financial sector, but there are possible security challenges that banks must consider and devise ways to deal with to maximize the potential of Internet of Things.
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