Over the past few years, the Internet of Things has become one of the most prevalent technologies of the 21st century. IoT provides an array of digital devices that exchange data via the Internet. Like others, this technology also captures new market opportunities for FinTech industries.
All in all, IoT app development solution in the financial & banking sector has made everything easier, from delivering better customer supports to increasing enterprise efficiency.
Customers’ experiences in the banking sector are transformed with IoT technology and the following gadgets. Hence, there will be a huge growth in IoT devices from millions to billions & the number of time individuals spent on them.
Growth of IoT in the Financial Sector
- It is predicted that over 70% of the world’s population would have internet access with over 26 billion gadgets connected.
- In the banking industry, IoT is expected to grow from $ 249.4 million in 2018 to $ 2,030.1 million
- McKinsey predicted that the economic growth of the Internet of Things will reach over 11 trillion dollars by 2025
- A Statista reports that the worldwide base of interconnected devices for telecommunications numbers 75.44 billion units
From the convergence of operational and information technology to the increased use of IoT devices in connected banking, the Internet of Things has several driving forces in the financial sector.
The numbers mentioned above are enough to prove that IoT has a great impact on the financial and banking industry. But if you are still unsure why you should implement IoT technology into your banking business, here are some convincing reasons.
5 Incredible Reasons Why IoT Implementation Is The Right Choice For Your Banking Business
#1 – Instant reaction to thief intrusion
Undoubtedly, there are problems with security and fraud regarding an individual’s account. Google stated that Gmail engineers had blocked over 15 million COVID-19 phishing emails per day. Thanks to an IoT-enabled security system, you can instantly react to any suspicious activities. So, many financial companies invest in the IoT to prevent fraud situations from happening.
The Internet of Things can alleviate many fraud-related risks and detect and block hacked accounts. This technology can collect user data and analyze the activity. If it detects any unusual data, you will be alerted immediately, and the account will become temporarily disabled.
#2 – Improved Credit Card Experience
Thanks to the incredible features of IoT, banks and financial institutions can also improve customers’ credit card experience without making costly changes in point-of-sales infrastructure.
Internet of Things features help banks and the financial sector interact with customers more conveniently. For example, an IoT-enabled interactive wallet card provides two-way communication between banks & clients in real-time.
The clients can anytime ask questions to banks and get an instant response for the same, thanks to the card-integrated display screen. It also allows them to make quicker account modifies and get more informed solutions.
#3 – Better Customer’s Experience Through Privacy
IoT is a network of versatile microsensors that helps banks and finance companies to collect and secure their customers’ financial information. With the aid of Internet of Things technology, you can improve customer experience as it helps to eliminate long queues at the banks. Plus, this technology guides customers on how to conduct self-service with the aid of virtual assistants.
#4 – Increased Business Efficiency Through Automation
IoT applications enable banks & financial institutions to improve business efficiency through the automation process. Specific IoT applications help banking and economic sectors automate financial transactions, transfer ownership of a specialized asset, and other functions.
For example,
If a person delays credit payment, the bank can disable the credit card remotely.
Internet of Things technology is also ideal for asset management companies too. The loan asset can be locked automatically via connected devices and sensors enabled by this technology whenever a contract completes.
#5 – Improved Investments and Capital Market Visibility
Tracking the market’s real-time state is important for better investment decision-making. Therefore, both private investors and worldwide companies can benefit from the IoT to improve capital market visibility.
Here are some applications of IoT in the capital market:
- Real-time data scanning for better investment assessment
- Managing autonomous trades
- Collecting and producing trade strategies, ideas, and recommendations
The Final Thought!
Hopefully, you have now got a clear idea of the impact of IoT in the banking & financial sector. With the implementation of smart IoT applications, this industry is witnessing a fundamental change in its work structure. However, if you want to enjoy the benefits mentioned above with a successful technology-integrated solution, you must contact a reliable mobile app development company.
They build a smart connection between people & machines with IoT solutions to enhance your business proficiency. They have a dedicated team of highly skilled and experienced developers. They are experts in fixing all challenges of their tech-savvy clients by IoTizing their business processes.
