The internet of things (IoT) and the possibilities it provides are only in their infancy. This is especially true in the commercial banking sector, where financial institutions remain uncertain how to translate the immense amount of data available to them into meaningful customer experiences. Financial institutions need to think differently than they have in the past in order to truly understand how to take advantage of IoT. Specifically, financial institutions need to understand: how IoT can give an indication of customer behaviors and where they spend their time; how IoT can make banking ubiquitous and customized to each person’s unique needs; and how IoT can be used to save customers valuable time.
The answers to these questions are slowly starting to emerge and give a clear picture of how IoT will eventually create the next level of customer engagement with financial institutions. Not only will real-time data enable personalized experiences relevant to what a person is doing at the time, it will also enable an environment in which: payments are made easier and more transparent; cybercrime and fraud is reduced; and all transactions are done almost instantaneously. The key will be in building a shared value system with clients instead of trying to dictate it to them. If financial institutions start thinking more like technology companies and understanding what customers truly want and need, they will position themselves to provide real value as we move closer to a post-modern world. To do this however, financial institutions must act now to deploy IoT solutions and lay the groundwork for what this next level of customer engagement will look like.