How banks can use IoT to leverage data and wow customers
BANKERS have yet to adopt internet of things (IoT) technology as widely their peers in manufacturing or healthcare, but that’s changing quickly.
IoT-enabled automatic machine-to-machine communications can save the financial institutions plenty of time as well as effort, allowing them to focus their productive hours and human resources on serving customers better.
While concerns regarding security and complexity of implementation are valid, boardroom leaders need to recognize the extensive potential of IoT.
The banking sector is becoming exponentially loaded with big data. This is because consumers and businesses are becoming more digital.
Here are three examples of how banks can use IoT to not only retain but also grow the customer base.
#1 | Offering proactive services
At the end of the day, it’s all about the service. The service a bank provides is what’s memorable to customers.
While banking can seem like a transactional business, it requires much more attention to detail from staffs.
IoT can quickly pick up faulty issues for any product changes or service hiccups. As a result, problems can be resolved before they get blown out of proportion.
Further, data logs from IoT devices can allow banking representatives to serve customers better during calls. Recorded customer preferences will help banks gain a deeper understanding of their clients so that more personalized suggestions can be made.
#2 | Upgrading security measures
After all, we’re talking about where our money is kept. So, better security is always going to be an important topic when it comes to banking.
IoT devices can help businesses secure their assets with a stronger identity verification process.
When security calls for it, customers’ designated devices can receive prompts for identity verification purposes. This can reduce waiting time while supporting economic activities to continue.
IoT-enabled verification processes can also help banks keep aware if there’s an unknown attempt of log-in. Immediate security measures can counter the potential hack and keep funds tight.
#3 | Improving product planning and management
IoT devices store data logs that help banks serve customers better. This not only helps bankers solve issues that arise more quickly but also allows them to improve the planning and management of new products and services.
The technology can help the banking business effectively understand their customers through their own lifestyle patterns so that more useful products can be introduced.
For example, banks can analyze data logs of IoT sensors that are installed in a city center. This can help banks identify locations that need more ATMs via foot traffic trails. Making ATMs more accessible to customers adds a lot of brownie points, especially if an area is populated with ‘Cash Only’ signages.
IoT can also identify lifestyle patterns through IoT sensors in malls and buildings so that better collaboration deals can be offered.
As of right now, banks’ use of IoT isn’t as pervasive as other businesses. Though, as IoT gain popularity in business use, its security measures will also be improved significantly. Besides, greater business use of IoT will also push for easier implementation of the technology over time.
IoT has a sure future in the banking sector. Now, it’s up to banks to use their creativity to find new ways to leverage IoT to transform the experience and services they provide to customers.
- Paperweight: Wealth management is still among the least tech-literate sectors of the financial services industry
- What can toy building blocks teach developers about security best practices?
- Reality check: Virtual events and the metaverse are not the same
- VMware’s Project Arctic gets going as Broadcom plans for the next generation of infrastructure software
- Mahindra: 2025 could be tipping point for EV adoption in India