Is Wearable Tech a New Opportunity for European Banks?

Banking CIO Outlook | Monday, July 06, 2020

Wearable technology—ideal for banking services—is poised to usher in a new era of digital banking in Europe. 

FREMONT, CA: Wearable devices are potentially influencing European banking services. From wristbands and smartwatches to eyewear, wearable devices offer easier access to banking services. As the usage of wearable devices increases, European banks are moving towards providing more and more features to customers.

European banks aim to provide a unique experience of banking through wearable devices. The unique experience includes balance inquiry, cash flow monitoring, alters and notifications, and offers depending on the geo-location and other factors. Banks can send promotion notifications on new features and account balances when a customer is near a branch or ATM through wearable devices. Banks can also integrate rewards provided by different merchants depending upon the availability of customer account balance and locality. Customers can also be informed about special discounts depending on the earlier spend they have made. Banks can inform bill payments or dues through wearable devices.

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Wearables have the potential to be geo-tracked, which would enable European banks to use convenience features such as helping customers find the nearest ATM. This envisions new, less conventional business models, such as retail partnerships, where banks can open their wearable communication channels to marketing messages from their retail customers. Wearables could also let customers make inquiries, transfer funds, and perform other transactions on an anytime, anywhere basis. Near field communication (NFC) technology enables consumers to pay for coffee, retail items, or services by merely putting their wearable near an NFC-equipped point-of-purchase terminal. This ultimately improves customer satisfaction.

Wearables could give banks instant access to customers. Customers can receive all sorts of routine notifications, such as the availability of a monthly statement or the possibility of an overdraft. Even more importantly, wearables can allow banks to fine-tune anti-fraud processes. Instead of automatically blocking suspicious transactions, some of which may be legitimate, banks contact the customer in real-time to determine the right course of action with the help of wearables.

European banks are now focusing on creating wearable device experiences to wow their customers with ease and value.

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