4 Ways IoT is Reshaping Retail Banking

Banking CIO Outlook | Monday, October 14, 2019

IoT offerings are powering banks with a range of opportunities, skyrocketing retail banking efficiency to the next level.   

FREMONT, CA: Advancements in technologies have revolutionized the retail banking sector. Embracing novel techs such as the Internet of Things (IoT) is providing users with greater access to their financial resources and more control over their purchasing decisions. The advanced connectivity offered by IoT-enabled systems has supercharged e-commerce, online investing, and payment processing. According to Absolute Markets Insight, IoT in the banking and financial services market is expected to grow at a CAGR of 55.3% between 2019 and 2027. The financial services will be driven by enhanced automation and the demand for optimized solutions. For organizations in retail banking, quicker payments, upgraded operability, and more responsive mobile services are the focal points for innovation. Here's how IoT offers retail banks an opportunity to gather more information on consumers, offering personalized experiences to improve efficiencies.

• Enhanced Security

An essential element in the banking system is security. Banks can only function on the trust of its customers as people only work with banks that offer them the most security. IoT will aid banks considerably in this respect as it can help in advancing a robust identity verification and privacy protection system. Biometrics are already being adopted widely, and the geolocation capabilities of mobile devices have also become convenient in the security and verification process. IoT helps banks in taking this further and enhancing security for the peace of mind of their clients.

• Dynamic Services

IoT can be immensely useful for retail banking and other financial services as it allows them to handle any forthcoming product developments or service errors easily. If there are any underlying concerns about a product, it can be detected with ease, and the necessary steps can be taken to alleviate the problem before it becomes too complicated. Furthermore, retail banking representatives can access the past activities and other related information of the customer, thereby aiming to provide better solutions.

• Increased Accessibility 

Wearable devices have been the most convenient option for banks because of their increasing affordability and widespread adoption. They are immensely popular due to the widespread adoption as banks from all over the world are determined to facilitate retail banking through these wearables. Currently, smartwatches are connected to mobile phones, and other autonomous wearables are backed by IoT technology, making wearable technology a hot seat in retail banking. Wearable technology is expected to introduce a swarm of additive features and functions to make retail banking services more accessible.

• Customized Marketing

Customers have started demanding personalized solutions for their diverse requirements of the retail banking sector. However, a bank can only tailor solutions for a customer if they have the required information about their purchasing behavior, current economic situation, and their individual requirements. With IoT, it has become feasible for banks to keep track of all activities of their clients and then come up with a solution specific to their wants and demands.

IoT has unlocked chances to tap into and make use of data collected, hence providing tremendous opportunities to multiple industries. Due to its potential, the technology has gained a lot of traction in retail banking, figuring out how to leverage this potential to generate higher revenues from its activities. 

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