IoT in Banking and Finance Sector: Can IoT Influence the Traditional Ways?
Banking and finance sector has been one of the primary sectors always. Including the singular and most important asset of the world, money, the finance sector is always booming with the incoming flows and the traditional ways of handling the heavy flow. However, when modern technology has taken its place in most of the industry niches, banking and finance is no exception. With the help of software and mobile applications, many things have become automated and easier to handle than ever as these solutions take care of the operations that can be conducted online without needing many resources.
However, when it comes to baking online, security has always been the most important concern. In order to protect the customer data and their transactions, it becomes important for the banks and financial businesses to implement the security measures that are hard to be broken by the hacking attempts and the data remains safe. Therefore, there has always been the scope of better development in this field. But the question is, why not IoT?
What is IoT?
IoT stands for Internet of Things, which is a network of interconnected physical objects and these objects are physical devices who store and share data among each other without needing human intervention. Therefore, IoT is all about building a network that can make decisions based on the data stored without needing manual operations to be performed. However, as IoT is all about building networks of physical devices, many people raise the question of IoT being able to change the approach at all. However, IoT can be implemented in the banking and finance sector that too for important operations which can make things much easier for all.
Areas Where IoT can Play As The Leader
Despite the myths of IoT being unable to change the waves of the finance industry, IoT has got the scope of being implemented in many areas where finance and banking are in the lead.
Collecting Debts
Isn't it hard to remember and keep a record of debts to be paid and to be collected? No worries, IoT got you covered!! Monitoring and connecting the ATMs to keep track of a users' account details helps the banks in knowing the paying capacity of a particular account holder about the taxes, the overhead charges which can be of cheque failures. Therefore, IoT can help the banks to monitor the activities of their debtors and provides information on their income and expenditure capacities to predict the repayment capacity of them.
Offers and Rewards
In order to increase customer engagement and attract more customers to own an account in their banks, or to promote the use of debit/credit cards, banks often roll out the reward point schemes or offer on certain purchases. IoT can help a lot over here. When the banks are considering to roll out a personalized scheme or reward plan for a particular account holder, they can study their expenditure patterns and search for the ones that he/she spends the most on. Therefore, offering discounts on that particular niche of the item can help the banks to ensure better customer engagement and increase the profits and sales.
Transparency and Protection
When the world is going digital so are the approaches and it includes payment methods too. With the help of today's technology, the banks are facilitating online payment systems which have become convenient for users to easily pay and at the same time has raised questions regarding the security of the payments done online as hackers can easily steal the information entered by the user at the time they are in between a transaction. Therefore, to build an application that is secure from all attacks it is required to hire developers who can develop your banking application perfectly to match the security concerns you have set for the solution and ensure reliability.
However, the implementation of security concerns has been already done through Artificial Intelligence (AI) concepts, but IoT can still add more security to a user's transaction process. For example, IoT enabled security cameras and an authentication system can be implemented over ATMs to keep a close look on the fraudsters and prevent them from stealing the money of other customers.
Expand or Not to Expand?
As a bank starts getting popular among the customers, there are many customers willing to open their accounts or operate them from different areas of the country. Therefore, to serve all customers with their increasing demands, banks will have to expand themselves and build a larger network all over the country to offer more reliable and better services. Hence, in order to decide the places where a new branch or any operational sector of a bank should be opened or not, IoT can be used extensively to ultimately guide your way. With observing the collected data and processing it, it can be derived whether a branch should be opened or not.
IoT for Banking and Finance
Therefore, it can be concluded that IoT plays a vital role in addressing the security concerns and issues currently persisting in the finance and banking sector. In the near future, IoT will rule the world with its extensive usability over each niche and provide excellent solutions to work with.