The drastic intervention of technology in every sector has impacted finance sector also at the same level. All the financial institutions from banks to independent money-lending institutes are shifting their focus to technology-oriented processes as they are way easier and more transparent than the traditional ones.
The technology being adopted in the industry by banking and financial institutions is gradually changing the increase in mobilization of financial services and innovation of use cases leading to adoption of IoT.
IoT is advancing services in the finance industry beyond recognition. Let us explore how.
Debt collection simplification
IoT sensors and networks can monitor the operations and supply chain activity of their debtor businesses. This will allow such institutes to determine their readiness to pay back without involving excessive overhead costs, associated with cheque failures.
Adding to it, an IoT network of ATMs, card-readers, and other point-of-sale devices can also be used to assess the borrower’s expenditure and income.
Customer oriented rewards
IoT based data analytics can be used to increase customer engagement and loyalty by giving customers loans as well as investment options based on their assets value, spending habits, and periodic income easier. By offering highly customized loans and investment options can increase the probability of the client considering the product.
Fraud prevention techniques
To overcome this challenge, institutions are implementing AI based anti-fraud systems. However, for fraud prevention, IoT too can be an effective game changer. The IoT enabled security systems can help prevent misuse of debit/ credit cards at ATMs. Certain techniques like eye-scanning and tracking of users mobile location before approving transactions can be used to increase transparency.
Capacity management optimization
IoT empowered monitoring can help track the number of customer units per day at offices and ATM s. The average queue time can further be used to determine the optimal number of personnel and counters at each branch.
IoT in finance can have a huge impact with an innovative redesign that allows users to save money by connecting their bank accounts to IoT enabled objects.
Having such tremendous opportunities, IoT is here to stay in finance sector and make a difference in the future.