IoT is equally relevant for traditional banks and fintech
IoT (Internet of Things) encompasses devices connected to the network that can improve various aspects of our lives. Every second in the world, 127 new devices are connecting to the Internet. According to some estimates, by 2025 there will be 64 billion of such “smart” devices. This is a big leap compared to 2018, when there were 10 billion of them. IoT gadgets are touchpoints that collect information about the environment. They share data through the cloud, where they are analyzed to transform businesses and people's daily lives. In particular, technology has already penetrated deeply into the world of finance.
IoT allows bank managers to reduce the number of staff, service costs, and at the same time reduce the client's waiting time. For example, BMO Harris Bank tested a "smart" branch, where instead of employees - chat bots. In case of unforeseen questions, chat bots can contact a real consultant using video conferencing tools.
Chatbots are capable of replacing personnel.
Smart speakers enable more convenient voice guidance. For example, in 2019 NatWest applied the voice banking feature using Google Assistant. This feature was compatible with the smart speaker Google Home and provided the ability for customers to inquire about account balances, recent transactions and pending transactions.
In addition, the Internet of Things can improve the ATM experience. In some places, they are equipped with a direct video streaming option, which makes it possible to communicate with cashiers if additional help is needed. And Citibank has included a Bluetooth-based system with IoT beacons, which gives users access to ATMs around the clock, seven days a week. The IoT can also analyze how customers use ATMs in order to decrease or increase their number in certain areas.
In addition, the technology is useful for banks that provide loans to the agricultural sector. For example, using the Internet of Things, a manager can assess the yield of agricultural crops and offer the farmer the appropriate financial conditions. This information helps build strong relationships between farmers and banks.
IoT could improve farmer banking.
The data collected by smart devices can also help a bank reduce account balances or secure loan repayments. For this, sensors are installed in borrowers' warehouses to track raw materials and inventory.
However, the IoT has long changed the way people make payments. Wearable devices - bracelets, watches, rings - have replaced smartphones and traditional bank cards and have significantly accelerated transactions. It's no surprise that payment processors are investing in IoT. For example, using a program developed by MasterCard, Samsung smart refrigerators not only monitor food temperatures, but can also order groceries. IoT is capable of transforming many processes in business and everyday life. And given the dynamics of Internet penetration and the increase in the number of smart devices, this is just the beginning.
IoT (Internet of Things) encompasses devices connected to the network that can improve various aspects of our lives. Every second in the world, 127 new devices are connecting to the Internet. According to some estimates, by 2025 there will be 64 billion of such “smart” devices. This is a big leap compared to 2018, when there were 10 billion of them. IoT gadgets are touchpoints that collect information about the environment. They share data through the cloud, where they are analyzed to transform businesses and people's daily lives. In particular, technology has already penetrated deeply into the world of finance.
Bank queues are a thing of the past
Today there is no need to visit banks often. However, sometimes a visit is inevitable. The IoT aims to help improve the customer experience. For example, queues are common for many banks. But IoT tools can quickly find the most suitable bank consultant for a client. In this case, the customer introduces his problem into the original equipment, then he is issued a ticket with information about the specialist, then the device reports when his turn comes.IoT allows bank managers to reduce the number of staff, service costs, and at the same time reduce the client's waiting time. For example, BMO Harris Bank tested a "smart" branch, where instead of employees - chat bots. In case of unforeseen questions, chat bots can contact a real consultant using video conferencing tools.
Chatbots are capable of replacing personnel.
Smart speakers enable more convenient voice guidance. For example, in 2019 NatWest applied the voice banking feature using Google Assistant. This feature was compatible with the smart speaker Google Home and provided the ability for customers to inquire about account balances, recent transactions and pending transactions.
In addition, the Internet of Things can improve the ATM experience. In some places, they are equipped with a direct video streaming option, which makes it possible to communicate with cashiers if additional help is needed. And Citibank has included a Bluetooth-based system with IoT beacons, which gives users access to ATMs around the clock, seven days a week. The IoT can also analyze how customers use ATMs in order to decrease or increase their number in certain areas.
IoT can save you from cost overruns
Using internet-connected devices has the potential to change financial habits. The Interact IoT platform educates users not to exceed the credit card limit. For example, if a user ignores the warnings and continues to spend over the limit, the device may send a shockwave to the wrist.In addition, the technology is useful for banks that provide loans to the agricultural sector. For example, using the Internet of Things, a manager can assess the yield of agricultural crops and offer the farmer the appropriate financial conditions. This information helps build strong relationships between farmers and banks.
IoT could improve farmer banking.
The data collected by smart devices can also help a bank reduce account balances or secure loan repayments. For this, sensors are installed in borrowers' warehouses to track raw materials and inventory.
IoT makes payments easier
Amazon Go is one of the most popular fintech IoT use cases. The retailer has implemented the concept of "shop without staff" precisely thanks to this technology. Motion sensors, cameras, smart scales, as well as devices at the exit for scanning cards made it possible to completely automate the shopping process, in which there is absolutely no place for queues at the checkout.However, the IoT has long changed the way people make payments. Wearable devices - bracelets, watches, rings - have replaced smartphones and traditional bank cards and have significantly accelerated transactions. It's no surprise that payment processors are investing in IoT. For example, using a program developed by MasterCard, Samsung smart refrigerators not only monitor food temperatures, but can also order groceries. IoT is capable of transforming many processes in business and everyday life. And given the dynamics of Internet penetration and the increase in the number of smart devices, this is just the beginning.
