The Internet of Things (IoT) is the network of interrelated computing devices, mechanical and digital machines, objects, and other items embedded with electronic s, software, sensors, actuators, and connectivity which enables these object to connect and transfer data over a network.
In a short span of time the world has been surrounded by devices like smart gadgets and intuitively connected internet, which strongly influenced businesses to adopt technology transformation. IoT helps businesses become smart, save time, save cost, gain accuracy and efficiency. It challenges Banks and Financial Institutes to remain focused and adopt Omni channel products in order to achieve seamless goals.
Banking industry is now adopting IoT to see the various potential ways in which it can help to take it to the next level of business and customer experience. Machine-to-machine connectivity that allows the collection of data and sharing of information in mass from customer devices, opens up multiple opportunities for financial institutions. It helps seeking knowledge from customer insights for better understanding, for better tracking and analyse the behaviours, wants and demands of the customers.
IoT empower Banks, NBFCs and MFIs to deliver customers a far more personalised experience by attaining foremost customer relationship. The Financial Institutions are able to reach a new level of understanding of the needs of both consumer and business clients.
IoT interacts with Data Science, Big Data Analytics, Machine Learning, and Artificial Intelligence and gathers data. The underlying value in IoT is the transfer of data, and the banking and financial sector relies heavily on gathering and analysing data. Therefore, it’s hard not to imagine IoT disrupting the banking and financial services industry.
Financial Institutes uses IoT technologies to create more engaging and context-aware customer rewards or to generate more intelligent and personalised customer cross sell opportunities. IoT empowered banks to go far more technologically to assist business customers and help them to achieve better commercial results, due to the banks’ ability to obtain and access data from across the business customers’ value chain, from suppliers through to distributors and retailers.
Innovative use of the Internet of Things (IoT) could make it possible for financial institutions to meet and exceed the expectations of these disparate groups. The challenge will lie in identifying the products, channels, types of interaction and frequency that will best satisfy consumers’ ever-growing desire for a better banking experience.