Internet of Things (IoT) is a hot topic among people from all age groups these days. It is a huge network of connected things and human, which acquires and shares data in the way it is used and surrounded them. In this post, we highlight the scope of growth for IoT on banking and financial services, the impact of IoT on the banking sector-
How IOT Can Be Used In The Banking and Finance Domain?
IoT has the ability to completely change the manner in which investment banking and financial services sector functions. Since the banking industry involves the handling of huge data transfer, collection, and analysis of data, IoT has a major impact on it which benefits both banks and customers. The IoT is the biggest technological change which can change the way the internet functions. The use of IoT technology in financial services such as the ones offered by VAT consultants can help people to save their valuable time, work more smartly and be more actively. The IoT on a banking and finance sector is still in a nascent stage but there is a high scope of innovation. IoT can help a bank in numerous ways from increasing revenue to a better quality of customer services with the use of artificial intelligence in finance.
According to a study conducted by TCS, financial institutions have reported to an average IoT budget of US $117.4 million which is o.4% of their total revenue. The study showed that they are planning to spend the US $153.5 million in 2018. A bigger of IoT budget of these companies will be invested in monitoring financial products and services. These companies also intend to allocate 30% of their IoT budget for monitoring customers. Such an allocation is expected to rise to 34% by 2020.
How Can IoT Help the Banking Sector?
Within a very short span of time, we will become habituated to devices like smartphones, censored devices and wearable tech at home, office, etc. This will help consumers to save an ample amount of time, do smart work and lead a more active life. But for the banking sector, there are numerous benefits of IoT. The banking sector has exploited the opportunities to develop many new ways to choose valuable data of customer via smart and sensor devices. IOT technology has enabled the banking and finance industry to help them to achieve a better commercial result.
Internet of things such as Biometric and Positional sensor can help backs to handle quality control in a more efficient manner and to take vital decisions related to business to stay ahead of competitors.
Management and Product Planning
Using IoT technology, banks can enhance and launch better service offerings. It will enable the banking industry to understand the exact type of product which they can launch in the market. They can also decide on the correct time for launching the product.
Marketing Has Become Personalized
Personalized marketing is one of the most effective ways of retaining customers in a highly competitive market. IoT technology has enabled it to the bank for keeping a track of all consumer activities and offer products and services according to their product.
Services Have Become More Proactive
IoT technology has made it possible for banking and financial industry to detect any fault in services and bring it to the notice of banks to handle such an issue before it goes out of hands. Using IOT technology, a bank can also keep a track of past activities and customer behavior. Therefore, any sort of unusual activity in a customer account is brought to the bank’s notice.
Data Analysis
IOT technology in banking industry collects data via mobile apps and digital sensor. Almost each bank today has a mobile app for banking which offers data at a large scale which helps it to analyze customer behavior to boost customer retention and requirement and helps in their decision.
Excellent Customer Relationship Management
IoT can help banks to gain a clear understanding of the existing economic condition and provide services to the customer according to their needs periodically. This will help in maintaining a healthy relationship with customers and a better quality of customer experience. With time, technology will become more dependable and offer a full suite output, ensuring data privacy, interoperability, traction, information sharing, and security.
Growth of Digitized Banking Panels
The growth of the banking economy through technology is being enabled by the growth of the banking panels and automated functional modules which needs device connectivity and equipment support for operating. IoT is not a completely new concept in the banking industry as the ATMs are one of the earliest IoT technologies we have been used. Keeping in touch with modern times and changing needs of brands, there have been a number of technical upgradations, resource validation, interface refinements, and security enhancements. If we relate this growth with other aspects, this will greatly enhance user experience.
Author Bio:
I am a chartered accountant by profession and writing is my side passion. I have a main interest in tax and finance related articles. I also provide tax-related consultancy services like VAT registration and VAT consultant services.
