The Internet of things (IoT) is a key part of digital transformation, which helps businesses keep up with the times. This trend in technology makes it possible for a company’s values, ideas, and plans for growth to change. A company that doesn’t quickly adopt IoT is likely to fall behind more tech-savvy competitors. The Internet of Things (IoT) is an advanced technology that lets networks of connected devices (like sensors, cameras, and smart gadgets) collect data in real-time, send it to the cloud to be processed and analyzed, and react to events. IoT is very important in banking and finance because it makes sure data is collected and processed efficiently and helps digitally automate key processes. Financial companies can improve their services and operations, make transactions safer, and give customers a cutting-edge experience with IoT-enabled solutions.
Here are reasons why banks and financial companies are using IoT technology
- Improved customer view and personalized customer experience: IoT solutions collect and process customer data (like regular payment locations, consumer preferences, driving behavior, etc.) that helps BFSI businesses learn more about their customers and figure out their needs and risks. With complete and up-to-date customer profiles, companies can tailor their interactions with customers, offer them targeted services, and help them get the money they need.
- Automation: Some tasks, like processing requests, opening bank accounts, turning off credit cards, etc., can be done automatically by IoT-powered systems, which reduces the need for human help and, as a result, human mistakes.
- Better security: IoT helps connect and remotely control CCTV cameras, smart alarm systems, vehicle telematics, and other monitoring technologies to keep buildings and equipment (like offices, ATMs, CIT vehicles, etc.) safe 24 hours a day, 7 days a week, and send alerts when something bad happens. IoT also helps to improve cybersecurity. For example, when people use mobile apps to pay for things, wearable devices like fingerprint scanners, retinal scans, and face IDs let them prove who they are.
- Fraud detection: The Internet of Things (IoT) and analytics powered by artificial intelligence (AI) help find fraud and hacker attacks by collecting and analyzing user account data. If suspicious activity is found, the user can be told right away, and their account can be turned off temporarily.
- Payments with one click: When banking IoT solutions and wearables are combined, users can make payments without directly using their credit or debit cards. Devices with NFC, like smartphones and smartwatches, make it possible to pay without touching the card reader. This makes it easier to do financial transactions.
- Trade finance: IoT makes sure that banks can see the physical flows they are financing and lets them make decisions based on real-time information. IoT-generated data helps banks better assess risks throughout the life cycle of a trade, allocate funds more efficiently, and scale up their financial strategies.
The IoT offers a wide range of digitalization benefits, such as a 360-degree view of the customer, better financial security, fraud detection, advanced insurance strategies, and more. Innovations made possible by the Internet of Things (IoT) help banks and other financial companies meet their customers’ needs and give them a better experience. Every year, more and more devices connect to the Internet. This is proof of the IoT evolution. IT experts come up with solutions that get rid of security problems and technical limits that stop digital transformation from happening.
Stop falling behind and use this tech trend to your advantage to find new business opportunities. The (IoT) team at Prunedge will help you find and tailor many IoT opportunities for your business. Click the “Get in Touch” button for a free 30-minute consultation.