The constant evolution of technology has benefited every single industry on the face of Earth much more than you and I could imagine. This holds especially true for the financial sector, where it has given rise to FinTech, which has now been around for a while now. However, the advancement of technology has now given rise to yet another exciting development: The integration of IoT in FinTech. While IoT was already growing, it was only a matter of time until it made its way into this sector. After all, research shows that there will be roughly 64 billion IoT-enabled devices in the world by 2025. Hence, it makes sense that financial institutions and banks are beginning to leverage in FinTech. How? Well, here are some use cases to demonstrate what it stands to do for the FinTech industry.
- Decision making: With IoT, businesses in this sector gain access to valuable data, including that about their customers, etc. As a result, they can fortify their risk assessment processes and achieve better results.
- Data collection: Data is the new oil — it is a cliché at this point, but it is so true. While data has made immeasurable contributions to the entire world in general, the fact remains that it is a critical aspect of FinTech. And with IoT, the endeavours to gather meaningful data and that too from a variety of sources are rendered significantly simple. Besides decision making, this data also enables banks to deliver requisite services seamlessly.
- Communication between devices: Of course, the collected data can’t be stashed away in one device and has to flow among various them to serve its eventual purpose. IoT enables precisely that, i.e., communication between devices, which helps financial services.
Now, let’s see the benefits of implementing IoT in this sector.
- Queue management: Just because queues are standard doesn’t mean they are acceptable. So, banks can use IoT to help customers properly navigate the premises, find the special assistance they need and be on their way without wasting precious time. It just means looking for people and services.
- Enable wireless payments: Wireless payments are easily among the most sought after financial services in the world. IoT helps with that, allowing customers to now use their wearables to make payments or even withdraw cash without needing to take out their smartphone, debit/credit cards, etc.
- Better customer support: Another compelling advantage of using IoT in FinTech is its ability to facilitate the delivery of high-quality customer services and support. Case in point: Use of smartphones as beacons to notify the bank, who can then quickly assign a service executive to assist them.
Clearly, there is much to be gained with the integration of IoT in FinTech and the general financial services sector. And if you also wish to leverage this advanced technology for your business and clients' benefit, get started on finding a trusted vendor for custom financial software development services.