The Internet of Things is no longer a sci-fi term. With more than 10 billion connected devices, it has greatly influenced the world we live in. Recently, the IoT paradigm has shifted from asset monitoring and cost reduction to profit making.
Manufacturing companies that adopted IoT technology have seen more than 30% revenue growth in 2016 alone. As predicted, the Internet of Things will generate more than $13 trillion economic value across different industries, and finance industry is not an exception.
The use of IoT solutions will enable banks and other financial institutes the power to create real-time data. They can have a robust control over the operational activities and monitor clients’ activities, which will lead to effective risk management.
Insurance companies can now study the driver behavior and offer insurance policy accordingly. The concept is recently used by Americas leading insurance companies. They employ an OB device and machine learning to adjust insurance pricing.
By analyzing the sensors data, banks can easily understand customers’ credit history and improve the credit underwriting process.
Automation of trading and investment activities
Financial companies are headed towards a dynamic future. The future of the industry will rely on two factors price engine and real-time market surveillance enabling financial institutes to monitor their client’s social media, stock markets, and credit history.
With the information, financial companies can fully automate different activities including payment and financial transactions.
Payment transaction security
Devices embedded with smart sensors offer multiple facilities to secure payment transactions. These include biometrics-based authentication programs, Visa Token Service, and magnetic secure transmission technology paired with mPOS terminals.
And if you are planning to move one step ahead, you can hire a software developer to leverage retina detection ad cardiac signatures.
Improved customer services
You can also improve customer satisfaction using IoT financial solutions. For instance, you can convert HBSC banking mobile app to the smartwatch application. Besides that, there is an abundance of banks that use beacons to engage with their customers who pass by their office. It greets the customer with a personal message and offers a product or service based on the customers past activities.
Besides that, financial institutions can also improve loan collateral tracking, make a risk-free investment decision, and reduce business and personal loan cost, all of which contributes to the global economy.