Banking of Things (BoT): Developing Banking and IoT Strategy

Banking of things is the concept of incorporating the technology of the Internet of Things, IoT, into the banking sector. One of this century's most significant and pervasive technology developments is the Internet of Things (IoT). With the expansion of gadgets and connections creating vast amounts of data in real time, it is anticipated to have a huge impact on all facets of life. Intelligent, networked devices are easily integrated into our daily lives and have already had a substantial impact on our financial situations.

Banks have been utilizing an early IoT device model for years: the ATM or automated teller machine. They have upgraded some ATMs to be "Smart ATMs" with live stream video support, allowing users to interact with the tellers for further help. These "Smart ATMs" contribute to cost reduction, increased operational effectiveness, and higher levels of client satisfaction.

IoT in Banking

Several banks are employing transmitters to give their customers personalized, pertinent cross-selling and up-selling offers as soon as they enter a branch, based on their needs. Banks can also monitor consumer traffic and adjust their engagement initiatives considering this information.

Although most banks have made remarkable strides, all banks must begin planning for the impending changes as soon as possible to take full advantage of these new technologies and prospects. Banks are researching new methods of communicating with their consumers for convenient, contextual, and personalized services to attract or keep customers while being on the lookout for technology that could save operational costs and enhance income. Systems that rely on users' willingness to give private data in return for individualized recommendations and services include location-based offers, personal financial management, and proactive advice.

IoT Use Cases in Banking

The "Banking of Things" can increase client loyalty and revenue for banks. When successfully implemented, the banking of things can revolutionize banks by supplying them with an incredible number of information and data-driven client insights. A more intelligent ecosystem can boost numerous banking KPIs, including identifying consumers who tend to overpay and increasing customer loyalty and satisfaction levels. Banks are moving slowly and with great caution when making improvements.

Thanks to the numerous IoT devices, the improved real-time data that the banks will have access to can provide A much more thorough and relevant profile of the clients, enabling banks to make better business decisions. To save their clients from navigating the bank's web portals and apps, banks, for instance, can send shopping offers, real-time updates of balances, debits, credits, and other information to their customers' smart devices. Banks can use similar methods to give their consumers alerts that improve and simplify their lives. Alerts, for instance, might be delivered when consumers go over their monthly spending caps.

To eliminate the need for clients to carry identification documents when conducting banking through physical channels, extended usage of biometrics for customer authentication at branches and ATMs is being adopted. Real-time fraud protection can be accomplished using the mobile user's geolocation information. The POS matches the location information from the user's smartphone with the location of the activity. The payment can be accepted if the data matches in just a few seconds.