The Internet of Things, or IoTs, are known to give users instant data collecting and processing. With IoTs giving users (and even financial tech companies, now) access to valuable data like insights on users’ behavior and preferences. With this valuable data, fintech companies and service providers can now do the following:
- Provide more effective customer service to their clients
- Efficiently manage risks
- Make better business decisions
- Ensure improved security for themselves and their customers
- More mobility and convenience, especially when clients use smart wearable devices
So, with all these benefits at first glance, how can IoTs transform our banks and financial institutions as we know it?
Since the future of IoTs and such apps are being talked about now, here are the five major ways that they’re changing the way we bank.
1. Upgrades On ATMs
“For years, ATMs have played an important role in improving customer transactions at their bank,” says Finn Gosman, a business writer at Study demic and Academ advisor. “But with IoT devices becoming more a part of our lives, now banks are considering ATMs to go IoT.”
Smart ATMs are already in talks of transforming customer transactions with more flexibility and convenience. So, how does it work?
“Smart ATMs will be able to integrate with mobile devices, so that the bank can offer a number of services to its users,” adds Gosman. “With smart ATMs, you’ll be able to do just about any type of banking task straight from your device, from transferring funds between accounts to doing cash deposits.”
On the other hand, banks will be able to save the time it takes for employees to manually do such tasks for customers, and grow their revenue by up to 30%, thanks to the enabling of smart ATMs.
2. Improved Experience With Credit Cards
With IoTs, banks can improve how they issue credit cards to people, as well as monitor card activities without making any detrimental and costly changes to how they go through point-of-sales. Using convenience as the driving force, banks can interact with clients in real-time with IoT-connected interactive wallet cards, which provide two-way communication between the two. This allows cardholders to ask the bank questions at any time, using the card-embedded display, which connects them to the services to, say, make a quick account change, or get more information on a certain card issue.
3. Automated Processes
IoT devices (a strong network of them) will let banks and financial institutions automatically commence important business processes remotely such as financial requests handling, transferring ownership of a specific asset, delaying any payments at a customer’s request, etc.
4. Better Security At Banks
Security is one of the top priorities of banks and financial institutions. And the good news is, smart IoT devices will help these companies by providing better security to their branches. IoT-driven devices such as cameras and motion sensors can connect to the Internet. As they connect to the Internet, banks and financial companies will be able to prevent money losses caused by theft or malware.
Here’s how IoTs can enhance security systems in banks and institutions:
- Monitor activities done in facilities, ATMs, etc.
- Sense gas and smoke around branches
- Instantly react to thief intrusion and any other suspicious activity, alerting police and blocking criminals in a bank or ATM
5. Customized Customer Service
“Companies can learn more about their clients and predict customer needs and requirements with the use of IoT applications,” says Keira Caird, a tech writer at Revieweal and Ukwritings. “With IoT apps, companies can gather real-time insights about the customers’ needs and interests, and then offer the right products and services to their users, creating a customized experience for the consumer.”
Along financial institutions have been slow to change the way that they do things, they still believe that there’s room for improvement, especially when they have customers rely on them, when it comes to banking. And with more and more using IoT devices, there’s no better time than now for banks to take advantage of this digital trend.
Although there’s still a lot to learn about IoTs, banks will soon look to such devices to not only do business with customers, but also improve the banking infrastructure to where services are safe and secure. As you can see from the benefits that we’ve listed in this article, it’s a win-win for banks and clients.