In the last few years, IoT, or the internet of things, has grown tenfold. This has been due to the growth in technologies, resources and allied facilities that have led to a digital revolution, which has connected almost every device or gadget we use to the internet. Suffice it to day, IoT has managed to achieve significant transformation. It is estimated that there will be approximately 25 billion smartphones, smartwatches and other wearables and connected gadgets by 2020. Every industry has evolved under this rising influence and this also includes the banking and finance industry.
There are a variety of ways in which these connected devices and the IoT has transformed the banking industry in the last decade alone. Let’s take at some of the most notable changes that have been seen so far:
Collection of data in real-time mode constantly
The implementation of the Internet of Things in the banking industry has meant that systems are now well-connected. This allows banks to collect real-time data and provide it to its customers. FNB Norcal is a good example of such banking institutions. Gone are the days when customers had to wait for hours to get their queries answered or for obtaining any information. Likewise, banks have also been able to accumulate data from the customers, which include their spending and saving habits, their patterns and preferences, which can help them in offering better services.
Personalized customer service
As mentioned above, banks are able to obtain crucial data about customers thanks to the Internet of Things. The accessibility to this information allows them to offer a more personalized and better customer experience to their clients. These days, customers stay in touch with banks through their smartphones, tablets and laptops and they all can be a valuable source of information about a customer. By observing their behavior and habits, banks are able to understand their clients better and offer them personalized services that can boost customer satisfaction.
Offer a better set of services
Another way the IoT has been used in the banking industry is to offer specialized services to customers. As banks gather data about their customers, they are able to create individual profiles that comprise of their banking habits and other preferences and conditions like their credit risk. This information can be used for making offers to the customers that are suitable to their background and a closer bond can be formed in this way.
Additional convenience to people
The use of IoT in different industries and places means that devices are now able to communicate with one another. This has led to the introduction of new payment methods such as Apple Pay and Samsung Pay amongst others. With the development of these payment methods, services become more convenient and beneficial to people and the popularity of mobile wallets in on the rise. People no longer have to carry a lot of cash around and can still be able to do their shopping without any hassle. In addition, the use of IoT in the banking industry has also enabled people to make payments from anywhere and to anyone, which has simplified businesses considerably.
Last, but definitely not the lead, the use of Internet of Things has brought about a reduction in frauds in the banking industry. The numerous software and devices used are able to collect information about financial transactions made by customers and use this valuable data for improving the security level and financial processes to ensure the system is not compromised.
As new technologies continue to develop and are integrated with IoT, the banking industry will continue to grow and evolve and offer better services to the public.