Connected systems are undeniably supporting the organizations in the financial sector to stay competitive. Today, as custom IoT solutions are revolutionizing the banking sector, customers are expecting innovation from their banks. Internet of Things promises a better future with technological advancements and new digital trends. Banking customers are inclining towards ease and instant access to all banking services. IoT enables them to access their bank accounts from any digital interface. Biometrics IoT systems automatically recognize the customer based on the physical, biological, or behavioral characteristics to access the account. IoT helps to digitize several banking processes such as risk management, account management, and payments. This blog outlines 11 custom IoT solutions that transform financial services.
Several banking services and products require a physical signature for authentication. This traditional physical signature system can be replaced with IoT-powered Wet Ink technology. It clones the physical signature on paper through any touch screen device. Hence, the physical presence of the customer is no longer necessary to make crucial financial transactions.
Real-Time Assets Monitoring
IoT empowers banks to monitor and track the status of financed assets. With custom IoT solutions, the request for financing and the transfer of ownership is seamlessly easy with the digital identity of people and objects. It is also feasible to monitor the quality of collaterals with assets condition monitoring.
Formerly, the Internet of Things limited to simple tasks such as steps counts and heart rates. Now, the technology is evolved and diversified. It is encouraged by regulators to undertake instant payments. The automated and contactless payment systems attract new-age customers. Technology leaders are working to take the payment system to the next level.
Wallet of Things
Any connected device can be embedded with payment functionalities. It can store money without the need for a bank account and allows the user to do payments directly to any payment terminals. It can host an attached, pre-funded wallet to automatically and instantly manage the expenses.
Collecting a small amount of financial flow from a larger number of users through a digital platform is called crowd financing, a kind of crowdsourcing and alternative finance. IoT makes crowd financing fast, agile, and easy.
Personal Finance Management
Personal Finance Management allows customers to have an accurate picture of their accounts, incomes, and expenses. It enables the user to track all the flows that come and go from the account. Leveraging the data generated by IoT, the next-generation personal finance management tools can be used by banks to offer customized services to their customers.
Know Your Customer
Know Your Customer (KYC) is used in financial services to identify and verify customer details. It is essentially set up to comply with regulatory and prudential requirements aimed to prevent fraud and money laundering. The financial behaviour of a customer can be assessed with IoT to offer customized and appropriate services and products.
Digital Ecosystem for Insurers
Today, insurers use IoT capabilities to simplify customer interactions, underwriting, and claims processing. However, new IoT-based business models are increasingly attracting insurers. Digital networking with IoT technology could be a strategic component in the insurance sector. It enables them to frequently interact with customers and to provide new services based on customers’ data.
IoT empowers banks to embrace voice-driven communication. It allows the customers to process sensitive financial data by harnessing voice assistant. In such a way, customers can access their accounts in real-time effortlessly. Integrated with Artificial Intelligence (AI), the Internet of Things will redefine the personal banking space.
Connected devices can be monitored by Artificial Intelligence systems by collecting financial transactions data to create a better profile with customer spending patterns. For instance, if a cybercriminal attempts to purchase by misusing a customer’s financial information, the IoT solution powered with cybersecurity verifies the customer’s usual location with the different location of the criminal to block the fraudulent purchase.
IoT enables banks to develop a 24/7 customer service experience through chatbots. These types of conversational assistants could allow for operational cost cuts during the tough times of pandemic. Chatbots use natural language processing and machine learning to improve the customer experience.