How Internet of Things is Transforming the Banking and Financial Services

What is the use of IoT technology in banking?

What is the Internet of Things technology?

Cynerio iot series yoyonline: IoT (Internet of Things) refers to the cumulative network of the devices that are connected and the technology which enables the channel of communication between the devices and the cloud and the devices themselves. 

Its usage in banking

Banking, an integral component of the BFSI(Banking, Financial Services and Insurance), is one of the primary sectors that have profoundly benefitted from IoT technology application in the field. 

With the aid of IoT, BFSI organizations are able to collect data in real time from connected devices (smart gadgets, cameras, sensors, etc.) and transfer them to the cloud for analysis and processing. This enables banks to react to events in real time. IoT plays a pivotal role in supporting the digital automation of key processes. It also enables seamless data collection and processing for banking and financial services. IoT enabled solutions not only enhance security and allow for smooth and secure transactions, but also allow banks to offer state-of-the-art customer experience. 

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Ways in which IoT is transforming the BFSI industry

IoT is transforming the BFSI industry in a revolutionary manner. It has enabled previously unimaginable comprehensiveness to the entire sector. It allows the industry to avail of tons of brand new advantages. In addition, it has a number of smart applications in the field that are changing the entire outlook and functioning of the BFSI sector.  Cynerio iot series yoyonline

Advantages of use of IoT technology in banking

The usage of IoT technology entails a lot of advantages for the BFSI industry. Let us take a look at some of the most notable benefits enjoyed by the sector through this revolutionary technology. 

• Personalization of customer experience: BFSI is highly dependent on customer experience as they have to tailor policies and services as per the requirements of each individual. IoT allows BFSI organizations to collect customer data like driving patterns/preferences, routine payment locations, individual preferences, etc. This helps organizations prepare detailed customer profiles that are regularly updated. This helps banking and financial services organizations to personalized interactions, targeted services, and aid them with relevant financial information and assistance. 
• One-touch payments: Contactless payments done via smartphones and other gadgets is one of the biggest improvements in the banking system since BFSI organizations began integrating IoT technology. Wearables and IoT solutions of banking are integrated seamlessly to enable these payments, even without the use of a debit or a credit card. 
• Security enhancement: Round the clock security of products, assets and personnel is possible through the help of IoT technology. It allows you to remotely control CCTV cameras, vehicle telematics, advanced alarm systems, and other monitoring technologies to keep an accurate and comprehensive track of everything. IoT is also one of the cornerstones of cybersecurity. Face ID, retinal scans, fingerprint scanners are all directly dependent on IoT for their foolproof functioning. 
• Automation: Systems that are powered by IoT are responsible for automation of tedious processes that took up a lot of human time and made the entire process prone to human errors. Automated request processing, opening bank accounts, credit/debit card monitoring/maintenance etc. have been made possible by the introduction of IoT in the BFSI industry. 
• Fraud detection: Identity frauds and hacking attempts have been made infinitely easier to identify these days with the help of IoT coupled with AI analytics. This prompt identification allows BFSI organizations to react promptly in case of suspicious behavior on the customer’s part and take necessary countermeasures to nullify any possible damage. 

IoT technology application in smart banking and financial services

Now that we know about the benefits that can be availed of with the IoT technology, let us take a glance at some of the applications of the technology in the field. 

• Smart branch: Gone are the days when a day at the bank means the entire day wasted. With more and more banks introducing smart branches of their own, the entire process is getting streamlined. IoT, with the help of a voice assistant (like Alexa), will direct waiting customers towards empty booths and minimize waiting time. It would also be able to interact with customers with basic financial matters with the help of voice recognition technology. 
• ATMs: The ATMs that have integrated IoT-enabled data flow will provide banks with crucial data regarding consumer experience, withdrawing patterns, and help them find the best locations for further installations. Environmental data of the ATMs that are collected via IoT is fundamental in helping banks implement cost-cutting procedures to optimize services and maximize profitability. 
• Audit and accounting: Audit and accounting is an integral part of any industry, not just banking and financial services. Communication channels between the CPA’s software and the client’s payment systems can be integrated with IoT. This will make the transaction process smooth and allow for secure data exchange. Moreover, it also facilitates the automation of the bookkeeping services that would have otherwise taken up both manpower and time. However, the biggest virtue of IoT is the unparalleled transparency that it allows.  Cynerio iot series yoyonline

How to integrate IoT with your BFSI organization today

Proper integration of IoT with your services will require extensive time and personnel. You will have to hire an entire department of experts for the job. That in itself is a time consuming process. Then there is the financial issue of hiring an entire department. This is why most organizations opt for outsourcing IT services. 

If you are looking for reliable IT outsourcing services contact us via our website. By outsourcing your IT services to us, you will be able to avail of our 950+ domain certified experts with years of experience in the field. You will be able to get your job done as per your specifications and at the same time save yourself a fortune in wages and utility costs. 

Contact us today to schedule an appointment. Visit our website if you wish to learn more about the entire process.