There is no end to innovation and with the advancement in technology and introduction of IoT (Internet of Things), it has been proven time and again.
As per the market trends, IoT has a strong grasp and is predicted to grow at a spectacular rate. With the integration of IoT, every sector whether it is automotive, healthcare, manufacturing, or retail, has evolved a lot and has opened up the way to numerous opportunities to skyrocket their businesses.
And when talking about the industries, IoT has a significant impact on the banking and finance industry as well. IoT has been considered one of the top big things we will see in the financial industry.
Although financial services have always dealt with the risk associated with intangible counterparties and online bill payments, so all the discussion about IoT in banking and financial services might not seem relevant to the way these organizations do business.
However, according to the report from Deloitte, there are many long-term opportunities for banking and financial services from IoT they need to see.
So in this blog, where we are continuously referring to IoT in Banking and Finance industry, we will fill you up with an overview and market stats of IoT as well as its benefits in the financial industry.
So let’s start.
What is IoT?
IoT, also known as the Internet of Things, is self-defined i.e. things that are connected via the internet. In other words, IoT is defined as physical objects or devices with sensors and other communication networks that connect to exchange data with an active internet connection.
These IoT integrated devices are now well known as ‘Smart devices’ which include devices like watches like Apple Watch, Smart speakers like Alexa, and many more.
As per surveys conducted, businesses state that they have received impressive returns over their investment in IoT, which implies the growth and implementation of IoT in every possible way, and also simplifying the tasks and making it easy for the consumers and businesses as well.
IoT in Banking Sector
The integration of IoT has benefitted almost every sector and as per the insights, the number of IoT-connected devices is increasing at a fast pace.
When talking about banking and finance, this sector plays a major role in boosting a nation’s economy. And hence the integration of IoT into this sector has been a turning point, along with a huge impact on the growth and efficiency of financial services.
The people, banks, and other financial institutions have been choosing IoT, as the continuous advancement in IoT has made things secure, easy, and reliable as well, especially during any banking activities like making transactions, paying bills, and many more.
Additionally, nowadays you can also see smart cash points with vending machines installed, to ease and automate banking services making it simple for financial institutions and the general public.
Users can also deposit cash into their bank accounts via machines, withdraw cash, and print bank statements, which has made things easier without waiting in queues.
ATM, also known as Automated Teller Machine is a well-known and also widely used device for the integration of IoT in the banking sector.
Benefits of IoT in the Finance Industry
Now that you know what IoT in banking is, you should also learn about the benefits of IoT banking. This will also help you understand why you should choose to integrate IoT into your business.
- Automates the process
- It provides data-driven insights
- It makes the payments secure
- Improvised Transparency
- Improved Service and Feedback
- Automates the process – As mentioned earlier at the start of this article, IoT simplifies even simple tasks and makes them simpler by automating the process. And as per the current market scenario automation has been in demand for the last few years and is still growing in the finance sector. IoT has automated every activity in the industry, ensuring high efficiency and improved service quality as compared to anything done manually in this sector. It helps in generating reports automatically, processes loans easily, calculates credit scores and EMI, and many more.
- It provides data-driven insights – Data has been an important part of the banking industry and IoT in Banking is the icing on the cake. The data collected in this industry can be analyzed and determined accordingly to provide enhanced customer experience, and endless business opportunities, and also helps in the identification of new opportunities that will help the banking sector grow.
- It makes the payments secure – Transaction is another essential part of the banking industry and making it secure is important to meet the consumer demands and also emits the risk of being tricked. Here again, IoT kicks in in the form of surveillance and alert systems, which include devices like CCTV. Also with the smart payment methods, the transaction details are encrypted, making the transactions secure.
- Improvised Transparency – The integration of IoT in banking has led banks and financial institutions to be transparent. This integration in turn minimizes the risks of getting cheated with proper analysis of the data collected and also helps in building a better business relationship between the user and the service provider.
- Improved Service and Feedback – IoT simplifies the work that a human does manually and which is actually time-consuming and might also lead to negative consequences. The IoT in banking helps the users track their spending behavior and makes suggestions accordingly and uses the data to provide improved customer service and enhanced feedback from them.
Final Words
The barrier between a user and the banking sector has been highly eliminated with the amalgamation of technology into a business and IoT has contributed a lot. Along with simplifying the work, and increasing productivity, IoT has made things easier and has made businesses evolve more. It has redefined the way banks and financial institutions work where now you do not have to stand in queues for withdrawing or depositing cash or while performing any other banking activities.
So, if you have any project idea or an existing banking institution you should surely consider the importance of IoT in this sector and it will majorly impact your business.
