We have been hearing a lot about the Internet of Things ( IoT ) for quite a while now. Essentially, it is specified as an interconnection of uniquely identifiable embedded devices and sensors with the use of the internet.
Like many other industries, the banking industry is also experiencing IoT. From 2018 to 2023, the worldwide IoT market in the banking domains is estimated to surpass $2030 million, growing at a CAGR of 52.1 percent. During the pandemic, online banking become essential. People are used to it and now enjoy certain benefits. Banks are using IoT application services to improve customer service, authentication, and safety and to streamline operations.
Discover all the unbeatable benefits of IoT application services in banking but before let’s explore the prominent IoT applications that make it the future of banking. Check out the entire blog!
Applications of IoT in banking
1. Voice banking
Voice banking has changed the whole banking experience. Users can easily integrate google home’s API with the smart speaker and leverage the benefits of voice banking seamlessly.
2. Autonomous wearables
In this technology-oriented era, autonomous wearables are replacing traditional credit cards and thus make contactless payments as well as cash withdrawals. Sometimes when traditional machines are not able to perform real-time functions, these wearables gained popularity and relevance and thus gave their widespread acceptance. It helps the banks in collecting valuable customer data and improves the quality of service.
The banking industry has developed a 24·7 customer service experience through the use of virtual assistants, or chatbots. This IoT tool in the banking sector uses natural language processing and machine learning, which as a result improves customer interaction and offers a more personalized experience every time.
4. Dedicated smart wallets
Digital smart wallets are simply the online version of a physical wallet. This means, it helps make numerous transactions such as bill payments, mobile recharges, money bank transfers, and many others. This wallet provides lay hold on prices and expenses that help improve users’ comprehension of spending patterns.
Benefits of IoT in the Banking Industry
The following are the major solutions IoT in banking brings. Check out :
1. Improves customer service
IoT in the banking industry enhanced the customer experience by providing regular insights. Banking clients can now use their mobile services to schedule services and monitor their status. This way, customers can track the services provided by the banks without even visiting. The banks are also helpful in providing tailored messages and notifications and keeping the clients updated with intelligent, context-sensitive devices.
2. Enhanced security and privacy
IoT integration boosts security and safety in the banking sector. IoT remotely controls various tools such as CCTV and smart alarms that ensure 24*7 hours, 365 days security. There are also hand and wearables or wristbands that are used in user identification and helpful in making cordless settlements.
3. Improved transparency
IoT is also helpful in providing some sort of insurance to lenders. They can easily collect any sort of information about the customers and minimizes any risk related to unreliable borrowers. The facility of loans is available on many factors such as customers’ past credit records, behavior, goal, etc. Hence, the financial investors make the final decision as a result of this.
4. Better service ranges
IoT allows the banking sector to be more customer oriented and thus provide a better range of services. Customers can be able to deposit money or track their savings records without waiting in long lines. Similarly, it is helpful for banks as they can easily track the customer history and can even reward them for achieving their targets and so on. Banks can also know the health status of their customers and make them feel that banks are concerned about their health.
5. Automation process
IoT provides the process of automation which is in huge demand no matter what sector is it in. In the banking sector, it decreases the mitigate risk and minimizes human efforts. Offer better compliance and thus improves the customer experience. For instance, it is helpful in the process of the loan, automatically generates the report, also saves much time in customer onboarding, etc.
6. Real-time monitoring
IoT can track the number of people visiting many times. If somehow, the number of visitors is much more than expected, it sends alerts to the banks, and they can take measures to avoid such situations.
7. Enhancing the efficiency of branch banking
IoT allows the bank put biometric sensors that alert bank members as soon as the customer enters the bank. This provides an intuitive banking experience to employees, as well as the central system residing in the branches. Many other services are already provided by the banking sector till now like providing public wifis to use the mobile banking system, using ATMs without debit cards to withdraw mobile cash, etc.
8. Fraud detection
This is the most usable factor provided by the IoT application services. It is coupled with AI and helps to identify the hackers in real-time. If any mischievous activity is detected in the account of the user, it sends alerts and notifications and the account temporarily gets closed.
9. Cardless Transaction-
Intending to facilitate transactions as much as possible, mobile banking applications now sync with credit and debit cards, allowing users to make wireless payments by their phones alone. In the COVID-19 pandemic, especially, this feature has allowed for the safe keeping of hygiene in shops and other crowded locations.
Implement IoT application services in your bank with OZVID!
OZVID technologies provide IoT application services that better the user experience that enhance customer satisfaction. We have an experienced and expert solution provider who uses the best technologies to bring the change in the way you want for your bank branch.
Get in touch with us by visiting our website or by calling us!
IoT technology provides plenty of advantages and new opportunities in the banking sector. Banks already leveraging the benefits of IoT adoption to emerge as future industry leaders. Other than this, many new technologies are now being tested and added to the banking industry regularly. If you want to hire an IoT application service provider, OZVID is your perfect partner. Hire now!