Fintech, the abbreviation of Financial Technology, has been a buzzword in recent years. The main concept of fintech is about how technologies can make financial services more convenient and efficient. There have been many startups focusing on developing fintech-related applications, and many of the major banks have also been trying to jump on the bandwagon to stay competitive. IoT has stepped in the evolution of the banking industry and been taking on an important role.
Banks are innovating by utilizing IoT technologies. They would be able to create a better customer experience, increase revenues and reduce expenses. An early prototype of modern IoT devices that has already been used widely is the ATM(Automated Teller Machine). It is internet-connected and able to collect customer data. ATMs have also been constantly innovated to be smarter and capable of processing more complicated customer requests. Banks could cut some labor costs with better ATMs without undermining the convenience and quality of the financial services they offer. In addition, some banks have begun using beacons, which could sense a customer’s every movement at a brick-and-mortar bank branch. Therefore, some customized offers can be instantaneously sent to customers’ smartphones at the moment enter a branch. This feature makes it more likely for customers to ask for additional financial services owing to the offers tailored for them, leading to increased revenue and enhanced customer experience.
Fintech will be keep growing, and IoT would be an important propellant.
References
- Andrew Meola . (September 12th, 2016). “Future of Banking: IoT, Retail & Mobile Banking Industry Trends.” Business Insider. Retrieved from http://www.businessinsider.com/internet-of-things-banking-retail-mobile-trends-2016-9
- “Financial Technology.” (September 9th, 2016). Wikipedia. Retrieved from https://en.wikipedia.org/wiki/Financial_technology
Source of featured image: http://www.businessinsider.com/internet-of-things-banking-retail-mobile-trends-2016-9