IoT: Redefining the Banking Ecosystem

By CIOReview | Monday, April 16, 2018

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Although not an early adopter of the internet of things (IoT), the banking ecosystem is gradually gravitating toward sensor-based devices and is refining their business models based on an IoT-based approach. It goes without saying that the banking industry, just like any other industry, is reaping the benefits of IoT for both themselves and their customers in various ways. For instance, banks can leverage sensors that record foot traffic and other location data to determine which branches to keep open or close. They can also utilize the location data to optimize the placement of ATMs.

Deploying IoT-enabled devices, banks can discern popular places to set up new branches, services that should be offered in-branch, and the sales target that they should set. For such insights, location and proximity data can be of great help to identify under-served and over-served areas. The most significant benefit of IoT is the ability to help banks enhance their customer experience and retain their customer loyalty through personalized products and services. Combining mobile technologies with advanced analytics, banks are now able to engage with their customers better than ever before and also provide them with customized solutions.

Beacon technologies can offer a more relevant and hyper-targeted mobile experience to customers depending on their location. Certain banks have also run pilot programs to enable users to enter ATM lobbies using verified iPhones, and Apple watches as digital keys instead of swiping their debit or credit cards. Geofencing in conjunction with beacon technology is also gaining steam in the banking landscape and utilizing the same banks are now sending personalized alerts and offers to customers to their mobile devices.