The Internet of Things along with machine learning and artificial intelligence is continuously bringing revolutionary changes in the technological sector.
Such terms are popular among all the individuals irrespective of the field they work and pursue their careers. IoT is one of the major industries which keeps on delivering something new now and then. From using IoT in smartphones to devices it is now widely used to automatically operate the home appliances as well as to even use it in tracking devices of cattle and other animals. Without any doubt, IoT is now widely available and used in every industry whether it is educational, financial, and much more.
The regular workflow of the banks is adopting IoT to help them in new ways of keeping and managing the accounts which were earlier done in traditional methods. The benefits and advantages of IoT certainly attract much attention from every sector of the economy because digitalization is the need of an hour. As soon as the individuals match their speed and understand the technology it will reap more rewards for the individuals as well as the overall sector.
We will be discussing the benefits and advantages that IoT can deliver for the banking industry and whether it should be implemented or not. What are the possible ways and where can it be integrated?
IoT in Banking:
All the domains of the economy are welcoming new innovative technologies and looking forward to the ways to implement it in the sector.
Such new approaches must be explored and must be considered for its proper implementation and that is what we need from the financial institutions and banking sector.
The top 5 advantages of implementing IoT which can reap rewards and whack the banking and financial sector are as follows:
1). Data Collection
- Data collection is the key attribute for the optimum utilization of technology. Whenever IoT gets integrated into the traditional system it will create wonders and we get a wide range of options.
- Smart homes and cars are the major talks of the towns and this helps in connecting the system with the hardware in a smart and automated manner.
- This proper and automated usage helps individuals to abide by the updates, latest trends, and rules and regulations which are compulsory to follow which revolves around the insurance policies and claims.
2). Customer Service Experience
- Contemporary customers require a modern solution and even they don’t have weeks to wait for the cases that need a quick solution.
- The technology shortens the time span which was earlier much longer which often frustrates an individual.
- The use of communication channels on a frequent basis is one of the best ways to get in touch anywhere and anytime with the banks and financial institutions with just the use of smart-phones, tablets, and much more.
- The more the companies know the customers the more services and products will match the choices of the customers and the companies in the long run will reap major rewards.
- By integrating the choices and matching up the paces the companies can yield many profits along with it provides customer’s satisfaction.
3). Influencing the decision-making process
- The credit risk of the clients can be mapped out by the banks and financial institutions from social media accounts.
- In the vicinity of providing better customer services along with calculating the risk factors that customers might need to face in the long run.
- This customization of risk calculation further gets to know about the potentiality of the customers that match their horizons.
- We earlier started working on computers then gradually we shifted to laptops, tablets, and now smartphones. The technology which is dynamic is now a necessity and not an innovation.
- Smart devices and phones can be used to make digital payments as an alternative to cards and cash.
- While making payments for the items, Smart devices that get connected to IoT can set the limits for the expenditure.
5). Automatic Payments
- With IoT and smart devices we can initiate a payment but what when we don’t possess any device.
- There might be a time with these technological advancements where the barcode scanner scans the code and there remains no need to bring the smart device.
- The sensors attached at the store might just scan the barcodes and a cash register might just note down the possible ways to process the payment.
- The system will calculate the amount which needs to be withdrawn from the customers from the digital wallets of the company in an automated manner.
IoT has just entered the financial industry it has a lot to explore in this sector. The growth of IoT in this sector is still hidden. IoT has an important role to play if it fails to make revolutionary changes. We have to be good observers and watch things getting happened.
Ways of IoT implementation
IoT and the financial industry seem to have constructed a mixture for both the technologies. A large number of banks are developing and using mobile applications to solve the queries of customers. So let us further discuss the implementation the ways how IoT can be integrated into the company:
IoT on guard:
AI can get into use as a defender against cybercrimes, preventing and detecting frauds and data thefts. This amalgamation of AI and IoT further assist in improving the security of the apps and gain the trust of customers.
- The mode of new payments where a barcode is scanned might be the new possibility that leaves customers amazed they can get more popular.
- The statistics will get high by the year 2021 as according to the research it has been said that the cashless transaction will reach at 51.5 billion.
- And if your banking system restricts you from using Google or Apple pay then there is a definite requirement to make a drift from the traditional methods of banking.
Payments from anywhere
- Whenever we think about smart devices the foremost thing that strikes our mind is a smartphone superseded by tablets, Ipads, and much more.
- Apart from the usage of smartphones and devices – cars, refrigerators, and much more with such use of these appliances, you will be able to make payment though it might sound stupid.
Wearables payment devices
- According to a recent survey it has been made clear that several banks and financial institutions are outlining to integrate smartwatches as the major source of their payment.
- We can’t predict the future though several predictions are made regarding the wide range of wearable devices as well as smart devices such as VR, fitness trackers for initiating payments with the help of AI.
- There are always pros and cons to everything. The other side of the coin cannot be ignored and we cannot ignore the possible issues that we might face with proper integration of IoT.
- The issues which may get hyped with IoT implementation are an increase in the unemployment rate, complexities attached to systems, and problems related to cybercrimes.
- Moreover, the exponential growth of IoT in banking and finance cannot be ignored. This is why technology is continuously evolving itself and producing better results.
- Almost every industry in the sector is searching feasible options to integrate IoT in its system as the future will favour those industries which continuously evolves its sphere to match up with the changing needs.
Parth Patel is a serial entrepreneur and CEO of SyS Creations which provides IT consulting in Toronto as a major service. Operating the IT Infrastructure of SMEs and startups keeps him on his toes and his passion for helping others keeps him motivated