The Internet of Things in the World of Banking

A niche market with amazing potential!

While banks are still evolving to become possibly best service providers, they do not stick to their basic offerings. They are exploring new channels of reaching out to clients. Although it is still too soon to a predicate, which solutions will be implemented, surely banks are curious what possibilities connected objects might proffer.

Due to its huge potential, the connected object’s market is growing exponentially and it is already too late to pigeonhole it as trivial accessories. We are currently experiencing dynamic changes in perception of connected objects. As many of these solutions may become useful in providing customer service, banks set their minds on exploring this aspect of new tech branch. Especially new improvements in clients’ identification lead to growing security and reliability in developing safe and fraud free customer experience.

While for some it may be seen to be a waste of funds and trifles unworthy serious business attention, these approach is luckily disappearing. Principals already realized that banks should focus on investing in the Internet of Things, as it offers solutions of tomorrow geolocation, biometrics, secure payments, also via biometrics. As these technologies are already in use, they are still undergoing improvements, especially in safety of use issues. Next step for making connected objects part of every household is solving questions of grave importance – dependency on smartphones and lack of general regulations.

For the sake of being able to interact with clients, banks made huge investments in mobile technologies, especially in HD mobile networks (4G+/5G), as to make it their main communication medium, as KPMG’s reports on Mobile Banking show. As we already may observe on the example of British users, this strategy pays off – almost 30% of bank customers in the UK is using their mobile devices to perform banking operations, for example, transfers of funds. As smartphones already merged almost every possible aspect of everyday’s’ life, it is the right time to become familiar with new services available on mobile devices, before we will be offered with separate equipment, highly specialized in particular fields.

But what if we already are equipped with such item, the Holy Grail of connected objects, or, as fantasy fans may express it – “The one to rule them all”? Isn’t it the bank card, that has all the customer data, allowing to predict clients’ next steps, allowing tracking his habits and understanding special customs? Bank cards are first ever tech-driven objects enabled to synchronize with purchases, giving banks opportunity to understand the *custom* in customer.

Before we truly understand all aspects of building customer experience via the Internet of Things and harness the potential of connected objects, we have to prepare for another revolution in providing services, as soon the wind of change will move such concepts as Big Data and Artificial Intelligence into clients everyday’s reality.