IoT has gained a lot of importance in the technology industry in recent times. It is a way of communication between interconnected devices by sharing of information. It has brought technology at the fingertips of a consumer. Organizations are also hugely benefitted by IoT as it generates a lot of data, which helps them to provide a more customized service. It also helps to target a more specific customer group for a marketing strategy. Banking and finance sector have also been hugely benefitted by this technology.
The impacts of IoT on financial institutions are listed below:
Mobile banking: Retail banking has been hugely impacted by mobile banking. Now consumers don’t need to go to banks for their transactions. It is estimated that more than half of the banking transactions globally are done through mobile devices.
Risk Management: IoT has helped to provide many layers of security for fintech software. Mobile location confirmation service provided by Visa helps banks to match the location of the transaction and customer’s location. This has helped international travelers a lot.
Data Analysis: It has already been proved that Big data analytics, artificial intelligence, machine learning has hugely benefitted the banking industry. IoT has helped fintech networks to store a huge pile of data for analysis.
Personalized Marketing: Through big Data analytics Banks can segregate customers into several groups. It will help banks to identify customers for launching any marketing schemes. Based on the customer’s preference banks can launch different marketing strategies for different customer groups.
IoT, over the years, has become an indispensible part of banking and financial technologies. Mobile banking, biometric and positional sensors have helped these institutions to provide impeccable service. This technology is an evolving day by day and, is helping banking and financial institute to cater well to their customers.