From barter to digital payment options, the banking and finance industry has come a long way. Nowadays there are many convenient and secure ways to conduct online transactions, all thanks to advanced fintech services.
The Bank of Things concept is gaining traction, and IoT technology is assisting financial institutions in providing tailored experiences and improved services by bringing more data into the industry. Aside from these advantages, there are plenty of others that come with incorporating IoT into finance technology.
For a long time, we have been hearing about the Internet of Things. It is transforming the education sector, medical sector, and a variety of other sectors.
How IoT technology is getting utilized in the Fintech industry?
Exceptional Customer Service
Fintech companies are using Industrial IoT (IIoT) and Artificial Intelligence (AI) to serve their clients better. If we take the example of smartphones, then they can serve as signals by alerting account managers at the moment when any customer comes to a branch. This small step saves a lot of time for both parties and hence enhances the overall client experience. Still, if clients are not interested to come in person, IoT technologies such as voice assistants that are built into smartphones or smart home devices can connect clients with appropriate financial services or yet assist them in the acquisition of new customers.
Resolving Wireless Issues
IoT devices are gradually replacing smartphones, credit, and debit cards in facilitating easier payments. So why get involved in remembering your card information, passwords, or maybe PINs? As per the Statista reports, the figure for connected wearable devices will boost above 1.1 billion by 2022 from around 526 million in 2016. As a result, in the coming future years, more individuals will start using these devices for managing everyday activities.
IoT devices provide unparallel convenience and ease of payment, as well as considered safer than traditional payment methods. IoT devices can contain biometric authentication due to the widespread use of biometrics in the sphere of consumer identity management.
On-Site Queue Management
Many banks and additional financial institutions use queues as a common practice. They, however, can be dealt with by employing the Internet of Points. IoT tools may also do electronic ticketing, supporting clients in walking about the business sites and locating the best representative to chat with. The scenario helps the customer enter their complaint into a smart machine. The ticket assigns them an agent and a number in the queue while their connected device updates the customer about their turn.
Useful Data Analytics
IoT devices collect user data, evaluate user behavior, and get important insights straightforwardly. The amount of data accessible for fintech organizations to investigate detailed insights on client behavior might be enormous as these devices act as sensory endpoints that collect information about the world around them.
They can then aim for the appropriate consumer sector with a product or service that is suited to their specific requirements and interests. For example, customer acquisition for loan products and other services with a higher degree of customization can be aided by data analytics from IoT devices.
Authentication & Safety
Talking about authentication and safety then we see that wearable IoT devices have been utilized as a way of improving the overall security in the fintech industry. To understand the whole security concept of this technology let’s take an example of the Nymi smart bracelet which uses the heart rate of a person for biometric authentication. The technology has already been tested and has come out as a winner in terms of safety for the creation of wireless communities. So, one must use smart biometric solution for enhancing the security measures.
Future-proof Your Banking and Financial Services
Over the last few years, IoT has seen an enormous acceptance in a variety of zones including banking and fintech. It leverages businesses and customers both, this is the reason for which smart technology such as smart wearables, smart payments, and smart security systems are being adopted at a large scale.
A huge amount of data is getting collected by the existing IoT solutions and new devices are going to become a major financial IoT trend soon. As they provide real-time analytics and pattern recognition, distributed stream computing platforms are emerging as the future of IoT.
When it is about banking, in that case, IoT data makes it easier to switch from old to new processes that enhances the client experience. Financial technology and banking firms are already stepping outside of their comfort zones to embrace IoT technology and become industry leaders. Banks are increasingly relying on the Internet of Things to turn data into actionable information.
If you are struggling to handle your financial aspects, then probably you have landed on the right page. Panamax is involved in offering the most secure and customized digital financial solutions for your banking and financing firm.
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