Five use cases of IoT in banking & finance

Technology is becoming increasingly pervasive in our everyday lives, whether we’re talking about the future of retail banking or the end of finance. The Internet of Things (IoT) is a part of this quick shift to the bank of the future, and both clients and financial institutions must adapt to these retail and mobile banking trends.

Uses of IoT in banking in finance.

Simplify Operating models

Operating model improvements have soared since the introduction of IoT in retail banking. Chase, for example, said in Q3 2019 that it had improved its digital account opening procedure, which now takes only 3–5 minutes on average.

Operating more efficiently is essential to improving the customer experience, and the shift in consumer preference toward digital banking has allowed banks to save operational costs.

Chatbots

The Internet of Things has led incumbents to create a 24/7 customer support experience through virtual assistants or chatbots. According to Business Insider Intelligence, Conversational assistants may save global banks over $8 billion in operational expenses by 2022.

Intelligent chatbots utilize natural language processing and machine learning to improve customer interaction and deliver a more personalized experience over time. For example, Capital One’s Eno was a US bank’s first natural language SMS text-based assistant. Eno can alert customers to potential fraud, repeated transactions from a store, or an excessively large gratuity.

Wearable and intelligent speaker technology

Wearable and intelligent speaker devices have exploded into nearly every industry, including banking, thanks to the Internet of Things. Consumers are flocking to smart machines, implying that the banking business has plenty of opportunities to grow.

When banking with intelligent speakers, customers may use voice instructions instead of glancing at a mobile device. In 2019, NatWest, for example, trialed a voice banking option with Google Assistant. Customers may ask about account balances, recent transactions, and pending transactions using the Google Home smart speaker’s capabilities.

Blockchain-based smart contracts

Security and privacy are concerns for consumers of all ages. Furthermore, banks may now employ blockchain technology to improve customer authentication thanks to the Internet of Things. According to Business Insider Intelligence, the advantage of using blockchain for identity authentication is that the identifying credential cannot be updated or altered because it has already been registered.

Blockchain’s ability to lower the cost of cross-border payments and increase the efficiency of trade finance processes is a major positive. Financial institutions invest around $1.7 billion each year in blockchain technology.

Customer centricity

Banks are concentrating on how the Internet of Things may help them build solutions personalized to specific customer demands in the face of massive digital upheaval. Some of the world’s largest banks are reorganizing their front offices in response to a spike in customer-centricity objectives.

Banks are increasingly focusing their IT efforts primarily on enhancing the digital client experience (79 percent ). Banks are reacting to the mobile demands of tech-savvy Gen Zers while maintaining traditional services for older consumers, such as phone banking.

Conclusion

Banking will continue to evolve as the Internet and the Internet of Things gains popularity. Customers and financial institutions who do not keep up with the newest retail and mobile banking trends will be left in the dust. I’m pretty sure that you don’t want to be the one left out; get on a free consultation call with Idea Usher now and know how exactly how can involve IoT in your business and grow it enormously.