Especially among millennials, smartphones and mobility are becoming the foundation of financial services. This is having a profound effect on the relationship between banks and their customers. Innovative ways to strengthen brand value, cross-sell products and increase competitiveness are required. So, it’s not surprising that IoT applications in the financial sector are becoming strategic and transformational. Use cases are being built around personalized customer service, guarding customer data and streamlining transactions.
Research shows that consumers who receive personalized messages are nearly 20 times more likely to act on product offers. Banks can dramatically increase customer adoption of new services with personalized, contextual marketing. Some of these use cases may seem futuristic, yet are just right around the corner or in early adoption. Here are just a few:
- Sensors in bank branches will collect and use analytics to gather information about bank traffic and customers in order to offer more personalized services.
- Connected beacon technology will give customers the ability to access branch ATMs via smartphones and receive personalized location-based offers.
- Installing in-home sensors when a mortgage is signed will streamline future home improvement financing. By leveraging pre-existing paperwork and offering discounted rates, banks can retain customers who benefit from hassle-free loans.
- Connected cars will enable consumers to pay for things beyond just tolls, fuel and parking. Car-based transactions will also be part of the banking experience.
Growing Security Concerns
IoT initiatives require Fintech to overcome consumer, regulatory and business concerns around data security and privacy. The banking industry is usually ahead of the curve when it comes to safeguarding customer data. However, security challenges increase exponentially when you take into account vulnerable IoT devices, which are appealing targets for hackers. Every internet-connected device expands a company’s attack surface and should be protected at the same level as a desktop computer.
Safeguard Financial Data with Great Bay Software
Our customers embrace IoT initiatives with confidence and success. The Beacon Product Suite delivers the device discovery, visibility and insight that are foundational for a secure and resilient network. As you deploy business critical IoT initiatives, Great Bay solutions enable you to know and trust what’s connected to your financial networks.
The Fin-ternet of Things is quickly becoming a reality for many financial services institutions. For companies to truly innovate and provide their customers with the experiences that they expect, connected products and environments need to be a part of the roadmap.