The banking industry has always been ahead of the curve in terms of the implementation of technology, and there is no surprise that IoT is gaining momentum in the financial sector. The use of IoT devices is helping banks to improve user experience, increase client engagement, and overall make the banking process more convenient and accessible. Digital transformation using location-based marketing tools and techniques allows banks to understand individual customer needs and deliver highly personalized banking solutions on and offline. Additionally, data from social media and purchasing habits can indicate individual credit risks.
To double down, every financial institution considers security their number one priority. A study by PwC Global Economic Crime and Fraud survey stated that 49% of companies encountered fraud activities in various ways in 2020. IoT applications can significantly bolster security features to detect and prevent fraud before it occurs.
But what about the move from traditional banking? Mobile apps and wearable devices such as Apple watches are now becoming a norm in everyday society. Users can now see in real-time their spending logs, create expense patterns, and be notified of any fraudulent activity.
Financial institutions have no choice but to become more efficient and user-friendly. FinTech with the adoption of IoT within its ecosystem has had a significant positive impact on client management, ease of transactions, and business automation. Having the ability to monitor and analyze data is crucial in producing insights that can help make better decisions and provide efficient customer service.