Designing a Comprehensive Banking Experience with Wearable Technology

By CIOReview | Wednesday, July 24, 2019

Wearable technology adds to creating a more comprehensive digital banking experience for the customers.

FREMONT, CA: Wearable technology is evolving and gaining ground, taking various shapes and forms. The banking industry is riding this wave of popularity of wearables in their pursuit of reaching customers in new, and innovative ways. They have mostly experimented with providing a secure payment option or necessary account information on wearables. A clear understanding of wearable technology’s growth and integrating them with a clear strategy to engage customers will help banks to provide real value to their customers.

Wearable devices are a little more addictive for users than smartphones; the wearable tech users check the devices and logging in to banking apps is likely to follow. As younger age customers adopt the new wearable banking, they’ll also be communicating their preferences to banks, which banks need to pay attention to and adapt accordingly. Wearable technology presents compelling use cases, which people haven’t seen in banking before. It offers access to a feedback loop of customer insights that reveal more about them. Wearables are a rich source of data on aspects including a person’s attributes, health, habits, routines, and many others that can help a bank to personalize its reach to its customers.

Security and ease of use are aspects which banks are struggling to provide for their customers. Wearables can offer a comfortable, unique option to provide a layer of security for a bank’s customers. A customer’s biometric information can be used to authenticate that person through their wearable device, reducing complexities in the authentication. With increasing accuracy in sensors within wearables and embedded security features for information on wearables, banks can provide seamless authentication and security for its customers.

No doubt that, over the next few years, wearables will transit to the new normal just as smartphones became an all-in-one device. Today is the time for banks to understand and become familiar with what wearables mean for their customer experience.