How Can IoT Help the Banking Industry to Grow?
by Manoj Kumar Digital Marketing AnalystThe Internet of
Things is evolving due to advancements in technologies that sparked the digital
revolution, connecting almost every piece of equipment or gadget we use to the
Internet. Banks and financial organizations utilize various innovative technologies
such as IoT, AI, ML to enhance customer engagement. Bank and financial
institutions develop policies and strategies to embrace digitization by
incorporating IoT into operations.
IoT helps banks optimize and improve their
practices to advanced levels of quality by improving their current processes
and inducting innovation-driven techniques. IoT brings many possibilities and
opportunities to the World of banking software solutions to solve problems and
improve efficiency.
In the global IoT
market in the banking, financial services and insurances sector, it is expected
to reach $2030 million by the year 2023.
Data-Driven
analytics:
IoT can vastly
enhance the accuracy and speed of data collection and offer a more accurate
result. With IoT, banks can get real-time financial data to facilitate and
improve the decision-making process.
Better
Security of payments:
IoT promotes new
forms of payment such as smart cars and biometric tokens. Most of the devices
are already using smart card technology, ATM-based transactions may become
obsolete. IoT also enhances wearable payment methods via wristbands.
Automated
transactions:
When machines are
able to conduct real-time transactions, almost any thing could provide an
automated payment experience. Banks, payment companies, retailers, and
technology companies will benefit from IoT-based automated payments.
Improved
transparency:
IoT with banking
helps lenders to collect detailed data on customers, thus providing some
insurance and staying away from the risk of unreliable debtors.
Expanding
services beyond banking:
IoT enables
financial institutions to become more customer-centric by expanding services
beyond traditional ones.
Enhanced
Security and privacy:
IoT integration
has enabled banks to incorporate blockchain technology as part of their
security risk management. Blockchain prevents hackers from changing customers'
identity credentials during authentication, thus reducing the risk of identity
theft and brute-force attacks.
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Created on Oct 28th 2021 08:38. Viewed 307 times.