bankingciooutlook

How Wearables Influence Banking

Banking CIO Outlook | Wednesday, September 02, 2020

The popularity of wearables has led banks to discover a simpler means to serve modern customers.

FREMONT, CA: Wearables are transforming the lives of the people greatly. These IoT-driven devices are particularly influencing health and wellness aspects. However, the popularity of the wearables has led various businesses to restructure their operations. The banking sector is one such industry that is eyeing to leverage wearables to enable features such as payments, alerts, purchase of stocks, account balances, and quick reports. The wave of wearables can even challenge mobile banking in the future. Features such as voice recognition and hand-free features further add to the popularity of wearables. Here’s a detailed look at how wearables will impact the future of banking. 

Payments

Payment through wearables will enable customers to make payments by simply putting their smartwatch close to near field communication (NFC)-equipped point-of-purchase terminal. Such convenience in payment will propel the users to use wearables for everyday transactions such as shopping for retail items or paying for coffee. According to a report, wearable transactions will account for around 20 percent of all mobile transactions by 2020. 

Alerts and Notifications

Wearables can enable the banks to offer the most reliable instant access to the customers. Users can receive various routine notifications like the possibility of an overdraft or the availability of a monthly statement directly at their wearable devices. Wearables will also allow the banks to enhance anti-fraud processes. For instance, banks can contact customers in real-time instead of directly blocking a suspicious transaction.

Convenience and Marketing Features

Wearables can be easily geo-tracked, thus enabling the banks to offer convenience features to the customers. For instance, banks can use the geo-location of the user to direct him to the nearest ATM. Banks can also open its wearable communication channel to market messages from its non-conventional retail customers.

The above applications depict the potential of banking services when it comes to wearables. With further advancements in technology, the popularity of wearables as a banking service platform will grow.

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