Various amounts of innovations especially in Internet of Things make the world grows faster. Of course it changes almost every aspects of life. The impact of this innovation has already been seen these days.
The number of digital devices are increasing. You can see people with smartwatch, smartcar, or even smart devices around you. With this much amount number of people using smart device and all the data, it is possible to give benefits to banking industry.
Potential scenarios include using IoT to improve their customer experience, create customer rewards, generate customer cross sell opportunities and generate engaging digital experiences but also devise new ways to improve risk management, reduce cost and improve operational efficiency. Real time data can make a difference to the risk a bank is taking when they provide a financial product. The ability to monitor residential and commercial premises, in addition to collecting social media, spending, and other credit behaviour data, allow banks to make better commercial decisions.
For example, by accessing the data captured by different smart devices, banks can provide customers with a holistic view of their personal finances, updated in real time, and anticipate their needs so to offer products and solutions enabling customers to make the right financial decisions. Same process can be applied to assist business customers better commercial results thanks to the bank ability to access data from across their business customers’ value chain, from suppliers to distributors to retailers. Conversely, physical, performance, and behavioural data generated from biometric and positional sensors for individuals, and shipping and manufacturing control sensors for businesses could help banks improve underwriting processes and reach new markets.
Bank might benefit from various sensors that monitor the activity and condition of retail industrial and agricultural businesses, such as connected field devices in manufacturing or agricultural sensors that monitor livestock.
Many users are already using technologies such as Apple Pay via an Apple Watch and new entrants to the market such as Google and Samsung are embedding payment functionalities in connected cards and fitness wearables. So far adoption has been patchy, but the foundations have already been put in place for this to grow. Tokenization is proving as increasing popular way to bring additional security to digital payment process.
So how might banks deal with their IoT security in the future? In order to grow and retain trust amongst their customer base, it is essential that any IoT-driven banking ecosystem is secured at all levels, from the device and its connections in the network through to any financial data held by banks in the cloud.
There is absolutely no doubt that the forthcoming connected world of the IoT creates multiple new business opportunities for banks with the potential to be the key differentiating factor in the run between innovators and laggards, providing they are able to step up to the security challenge and implement the best practices to understand and protect their customers from the many new data security risks ahead as well as implementing improvements in overall network infrastructure, big data, analytics, cloud infrastructure & accessibility.