The internet of things (IoT) has become an important part of the evolution of banking; moreover, it remains an integral part of its future as well. Here are five ways IoT has changed (and is still changing) the financial sector:
- Account management – biometrics has changed the game in the financial services market. It has allowed customers to access accounts and data from anywhere in the world with security protocols that are unique to them. Coupled with the digital signature, biometrics is set to make nearly every financial transaction easier, faster and more secure.
- Smart Collateral – the transfer of ownership of an asset can be completed with minutes with a digital identity. It can even help financial institutions have better control over mortgaged assets, process loans more quickly and monitor collateral in real-time.
- Secured payments – IoT technology makes completing payment transactions a breeze. Although there are a few security concerns still being worked out, future processes promise to have accurate identity verification and increase overall security for all transactions.
- Customer onboarding and know-your-customer – adopting IoT will help financial institutions link with a customers’ digital persona and gain insight into their financial behavior. It will also help reduce money laundering and fraud.
- Sensors and beacons – sensors allow financial institutions to monitor traffic and better decide where to make investments and how to set target goals. At the same time, beacons at places like ATMs allow financial institutions to personalize services and make offers tailored to each individual situation.