The Internet of things is considered as an emerging and futuristic technology. In simple words, IoT refers to the physical objects that are connected with devices and powered by smart sensors, software and other technologies.
With Internet of things technology, many industries have made their process more efficient, reliable, and connected. Among them banking and finance is one major industry that has redefined its strategies with the internet of things. Undoubtedly, IoT in Banking and Finance is now becoming more secure.
However, it delivers real time data and allows the exchange of data and other important information that are required to increase transparency and accuracy.
According to reports, “ The global internet of things (iot) in banking market size was valued at $12.7 billion in 2021, and is projected to reach $237.4 billion by 2031.”
How IoT in Banking and Finance is turning into smarter?
The word Internet of things refers to the interconnected devices that ensure to collect, transmit, and allow data processings on Cloud or on premise service that ensure to improve banking experience for clients as well as banks. Interconnected devices bring more accuracy as well as automation to the process.
Benefits of Internet of Things in Banking and Finance sector –
- Automation
The foremost benefit that we can’t avoid in the banking and finance sector is the automation process. With the help of IoT in banking and finance, several processes can perform automatically such as open bank accounts, disable credit cards, and process different requests that maximise human errors and lead to productivity.
- Increase Security
Second reason that banking and finance should consider internet of things technology is that it enhances security. With the IoT banking and finance industry can connect and remotely monitor different CCTV cameras, smart alarm systems, and vehicle telematics that supports 24\7 monitoring.
Moreover, the internet of things also allows fintech companies to install smart alarm systems and send alerts and reminders for any suspicious activities. Advanced technological advancements allows the banking and finance industry to leverage functionalities such as face ID ( allows users to pay an amount via face detection), fingertips, and retinal scan. Banking and finance customers can make payments with their smartphones easily.
- Fraud Detection
IoT technology helps to detect fraud that helps f to identify the suspicious attacks by defenders and attackers. IoT powered solutions is able to analyse the user account and if in case any suspicious activity is witnessed the action can instantly be taken and in worst case specific accounts can also be suspended on a temporary basis or can help to take the right measures.
- One Touch Payments
One touch payment is the next amazing thing that the users are experiencing. With the integration of the internet of things, without using debit and credit cards, users can pay with one click on the screen. Undoubtedly, with IoT powered devices including smartphones and smart watches, now users can experience the new concept that is winning the hearts and that is contactless payments that leads to seamless transactions.
Trend of Banking and Finance Industry
- Simplified Operations
It has been observed that now banks and insurance industry main aim is to simplify different operations. For both employees and customers the operation models are streamlined that leads to a more efficient process. Even now with the digital world there is a shift towards the digital era, where customers also don’t prefer to indulge in the complex processes.
- Smart Chatbots
Integration of smart bots is the new trend in the Banking and Finance vertical sectors. Live chat bots allow users to resolve the queries and quickly provide responses on the issues and problems of the users.
Moreover, smart chatbots help to increase customer interaction and deliver personalised experiences. Apart from this, it also helps to save time for the employees.
- Cybersecurity
Security is the major concern of the banking and finance industry. The demand has increased at a high level. The connected infrastructure of IoT in the Finance industry is offering several benefits but meanwhile banking authorities have to be proactive and continuously update the security patterns on a constant basis. It will exclude the threat and suspicious activities. Internet of things
Conclusion
Finance and Banking IoT solutions are in high demand. Undoubtable, Internet of things technology offers a wide range of benefits and allows us to keep pace with the trending tech world. Hence, with integration of IoT in the banking sector there is new advanced insurance strategy is introduced, easy fraud detection, and many more benefits can be leveraged.
