IoT in Banking Sector
Internet of things (IoT) includes anything and everything that is connected to the Internet and able to communicate and share information with several smart devices. A banking sector introduced the internet of things to improve risk management, reduce cost and increase operational efficiency in their premises.
A banking sector can install a different type of sensor to monitor the raw materials, produce stock numbers, synchronize the accounts and check the balance availability in the customer account. By using machine-2-machine (M2M) communication big data analytics technology higher cyber range of security the IoT provide a large number of efficiency and performance in banking sector
How will the IoT effects payments and banking service?
Household appliances that use consumable supplies
Different appliances used in house such as vacuum cleaner, washing machine will have sensing and payment capability so that can easily detect when they need too many order supplies, then they place the order and executive the payment and alert message will send to the owner of house so that he/she can approve or cancel it as per their requirement.
IoT in retail banking
Retail banks are mostly looking for opportunities to increase their savings, reduce risk and increase their credit base. Thus they used IoT technologies to monitor their customer. The IoT device informs bank to the financial status of their customers. By using IoT integrated system a bank can provide tailored product and service to each customer. Also, banking sector introduce a smart ATM which provides a real-time data and service to the customer as well as bank simultaneously
IoT in capital market
An IoT introduces real-time information flow which will give high-frequency trading and micro-investing system to minimize the risk factor for investing capital in the market.
IoT in Insurance
Now a day’s most insurance company installed an automotive sensor which helps to monitor information about the product design defects, so they can price coverage and premium more accurately in proper time. Using IoT technologies will increase the eco-friendly system between the bank and customers through which valuable data or information easily communicated.
IoT in Investment
By introducing IoT technology in investment sector can help to increase the business in banking sector IoT technology can provide a better understating of clients interest and purchase patterns .this also helps to enhance their wealth management system thus investment companies also offer tailored solution based on the data.
With the help of the IoT technology, a bank could be able to deliver the credit and loans at much as lower costs as well as give existing loan officers efficient tools when reviewing credit portfolios. IoT gives access to real-time client data to enable new business model based on real-time analysis of available working capital and cash flow.
Using Internet of Thing (IoT) in the banking sector is improving customer experience, create customer delight and also create customer cross-sell opportunities. An application of IoT is limitless. There can possibly be more than hundreds of other use cases that can improve the customer experience and provide a smarter lifestyle for everyone.