ARTICLES — February 28, 2020

The Internet of Banking: How IoT Transforms the Financial Industry

When it comes to implementing tech innovation, the financial industry is known to be conservative and prone to bureaucracy. While retail and manufacturing sectors have made their way to IoT advancements, the banking industry is still catching up. Even so, the financial and banking industry will grow rapidly in the future, thanks to the advantages IoT provides.

Whether discussing the future of retail or mobile banking, IoT is playing a larger role in how their business works. IoT is a huge part of financial and banking industry’s evolution toward the future, and both consumers and financial institutions need to adapt to these retail and mobile banking trends. Let’s take a look at how IoT’s impact on financial and bank industry.

Increased Transparency for Improved Decision-Making

The data provided by IoT will give financial and banking companies flexibility they usually struggle to provide. The future of IoT in the financial and banking industry means loan providers will get detailed data on customer’s credit debt, history, and asset details. As a result, financial companies will have a better decision-making system for granting credits. This transparency will offer banks some insurance as it reduces the risk of dealing with unreliable debtors in the future.

Indoor Client Navigation

Queues are common in most banks and other financial institutions. However, they can be managed using IoT. By adopting beacons in daily operations, financial companies can help customers in navigating while on the business premises. Instead of clients finding their way manually in the bank, they can simply state their reason for the visit, then get matched with a suitable expert to resolve their issue. This solution will improve efficiency, service delivery, and customer experience.

Reliable Payment Security

Security and privacy are two of the biggest challenges for the financial industry. A plethora of software and gadgets are tackling the challenge of making payments safer and more secure including tokens, location tracking, biometric authentication programs, and even cardiac signatures. For example, using IoT, customers can now book appointments with smart ATMs from your phone that will give your cash after a quick tap of an NFC, QR code, or an iris scan—all of which are deemed much safer than traditional chip and pin.

More Efficient Business with Automation

IoT solutions enable companies to increase efficiency using process automation. In banking and financial services, IoT will improve customer service, streamline daily functions, improve customer engagement, generate cross-sell opportunities. For example, Citibank adopted beacons that allow customers to use their smartphones to unlock doors at ATMs during off hours rather than using key cards. Goes beyond making transactions safer, this automation also provides customers with a more reactive and personalized experience.

IoT is quickly molding itself within the financial and banking industry at a fast pace. While some banks experienced early adoption and are heavily investing in the right infrastructure, others continue to experiment with IoT to determine how it will shape the future of the industry. Telkomsel IoT offers you reliable and secure connectivity and powerful management so you can provide the best service for your customers. Decide with IoT, and visit https://telkomseliot.com/ to find out what’s best for your financial and banking enterprise’s future.

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