Give a Touch of Modernity to Banking Services with Internet of Things

‘The vogue is to have more interconnected smart services’.

Mobile technology sparked the digital revolution to trigger a network of interconnected gadgets and equipment surrounding our lives in the past few years. Internet of things has stressed on the manifold usage of smart gadgets that have made the top mobile application development companies to rethink their strategies. The smart approach to carry day-to-day activity can be a setback for mobile applications whose market is already saturated. Internet of things is, therefore, the ultimate thing, which is here to stay, gradually expanding its influence in other sectors. Even, the statistical figures point towards a promising future:

According to a report by statista.com: 

  • The world of 2020 will witness over 31 billion IoT devices in use worldwide.
  • Already IoT market predicted to expand way beyond the one billion U.S. dollar margin annually from 2017 onwards.
  • 328 million devices establish the connection to the internet each month.

Coming down to the sectors, internet of things have displayed positive results when applied extensively. Healthcare sector, for instance, stands to benefit from interconnected services. So, why not apply to banking service.

Finance is such a field where even a minute error can cause unrecoverable damage. It is one such sector where services are interrelated. If a bank dissolves or a sudden crash in the stock market can have a damaging impact on the country’s economy. There is no need to explain the adverse effect such an incident can have on any 9-to-6 job employee. And when the consumers are already adopting technology at a rapid pace, there is no reason whatsoever to refrain from exploring the unending possibilities or give a touch of technical excellence to banking services.

More so, referring to a report by Gartner, the fact that IoT is going to rule big in our lives confirmed:

  • Consumers and business investing in IoT endpoint hardware will reach a total figure of $3 trillion by 2020.

  Going back to the topic, there are two possible questions that require answers:

  1. How can we implement internet of things in the banking industry?
  2. How can IoT help in modernizing banking services?

Responding to one question will automatically answer the other. Therefore, we figure out ‘How can IoT help in modernizing banking services?’ or ‘how banking services stand to benefit from IoT?’

There are few such points which prove that proper incorporation of IoT technology into banking services can best serve not only the banking officials but general customers as well. Let’s study the points:

  • Management and planning process using collective data from different sources to offer targeted services.
  • Tailoring personalized customer solutions specific to their needs by tracking factors such as their economic conditions, buying behavior and personal requirements.
  • Proactive services such as addressing service faults and maintaining past records of customer activities to offer fitting solutions when needed.
  • Small businesses and local traders have better access to financial backup by connecting them to banks and improved technology.
  • Maintenance of privacy and data security.
  • Facilitating basic banking services through smartwatches and wearables.
  • Customers working in agricultural sector stand to benefit wherein IoT analyze and evaluate farm outputs to enable banks in adopting flexibility while meeting with financial terms.
  • Catching fraudulent activities in debit/credit card transactions.
  • Track raw material and inventory stocks through sensors installed at borrower’s warehouse to deduce account balance and ensure a loan payable when inventory is sold.

Also Read: IoT in law enforcement

Final words

Moving to the conclusion part, let us take a few steps backward to the time when IoT was first introduced into the financial world. Confused!! Then, for all those who are unaware of this fact, allow me to help with the knowledge that retail banks have already been using an early prototype of IoT device and that too for decades. Guess what is that?? Well, it is automated teller machines or ATMs. And now, the sector has realized the implication of modern technology and are on a fast road to adopting IoT to enhance user experience and reduce cost at the same time. Few other examples of modern technology in the banking industry can be mentioned here such as:

  • Beacons used to feed customized offers to consumers’ smartphone as soon as they step onto a bank.
  • Recent ATMs have live stream video support to allow customers to speak to tellers if assistance is required.

Now, in the words of Rohan Shravan, Founder & CEO, Notion Ink, “2018 is when IoT will see a boom and e-commerce will see a halt.”

The mentioned points are clear enough to convince anybody that internet of things contribute towards making banking sector the most secured and efficient one, something which financial services require.

Top-rated mobile app development companies involved with offering banking app development services must update them by incorporating latest technical know-how to stay up with the changing situations. And since users already got a taste of modernity, they are bound to turn their heads away from obsolete assistance.

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