A person sitting in one corner of the world able to control things at the other end of the world merely through the gadget in one’s possession and able to receive the response in real-time. Remotely switching on the tube lights, fan or a music system. Getting reminder about daily dose of medicine or getting an offer for a restaurant you are walking by is happening and gaining popularity too. Banks too have started using this for creating a better customer experience by providing offers or knowing the personal profiles. The more data points you have more you can explore & offer. The question is how is this thing done, what is the underlying technology that lets these things happen?
The Internet of Things, or IoT as it is called, is slowly but surely taking over one industry after the other.It is a network of physical devices, appliances, vehicles, health monitoring sensors etc. that are connected through some network or embedded software sensors that can exchange data. The data thus gathered can be analyzed, optimized and result is customized services or operations.
Wi-Fi and sensors are changing our lives from the minutest to the biggest details, bringing in a whole new age of connectivity. The connectivity obtained due to IoT also gives people and businesses the chance to obtain much more data, which they can use for different purposes.
The IoT market is expected to grow to a staggering amount of $15 billion by 2020. And that is just the beginning. Europe has a 40% share of the global IoT market. Western European countries are especially promising in the IoT market. There is a lot of unexplored potential within IoT is still unexplored, and one of the areas where it can potentially become a game changer is the banking industry. With the help of IoT and its concepts, the relationship that people share with their banks today will change forever. And that is just the beginning in a long list of benefits brought about by IoT to the banking industry.
Even if this looks much promising and interesting there are certainly some concerns and challenges in implementing this especially in banking industry. Take a look at following challenges:
Now let’s focus on other side of the coin – Banks can utilize the sensors, analytics, and technology that comes with IoT to provide customers with more personalized services. This can happen only when the banks receive data about their customers and tailor their services accordingly.
IoT can bring an extent of change that was never previously thought of with regard to the banking industry. The only limit to the change is our imagination. Novel applications and services are already rolling out for trial followed by implementation. It is time for IoT to bring some revolutionary changes to banking.
It can help banks in dealing with the world of online banking, especially when it comes to incorporeal assets such as trademarks, contracts, patents, and more.
IoT is a vast sector with many possible opportunities for investment and partnerships. Banks which utilize IoT can also make use of this to form partnerships with other sectors which have also invested in IoT.
Although there are a few concerns regarding the utilization of IoT in banking, the benefits it gets to the banking industry cannot be ignored. Since there is still a long way to go in integrating IoT with our lives, there is still time to work out the kinks before IoT becomes an integral part of our household. Banking sector in particular will have to take stringent rules regarding use of IoT as it deals with matters of personal data and money! People will love to use IoT provided the safe-guarding measures are ensured. Every sector is touched by technology and internet in particular. This is going to be the medium through which communications will happen in future.