Banking has been around since the start of civilization, first emerging historically in the Holy Roman Empire. It is a concept that has kept civilizations running and been a silent advocate behind numerous projects and significant human advancements. So what happens when a system as antiquated as banking comes into contact with the internet and modern technology? It almost seems as if these two systems counter each other. Technology is associated with speed, efficiency, connection, reach, innovation, and other words of the sort. Banking is associated with slowness, conservativeness, stability, consistency.
The Internet of Things is bringing these two worlds together by offering a manifold of ways to augment and shift the banking system as we know it via technology. It is posing the ability not just to catch up with the times, but to move past them and explore the future of banking.
One of the options for how IoT can be used in banking is through wealth management personalization. This is a process that uses data and algorithms to produce insights on how to productively and fruitfully manage wealth. It is much more beneficial than going to a person because it has a much higher accuracy rating and also is much quicker than human processing. It also allows for a wide array of possible insights that allow for further personalization and acknowledgment of possibilities.
Another option for how IoT can be used is for improved payment security. It has the potential to eliminate easy-to-lose systems of payment, such as credit cards and checkbooks, and replace them with a wearable payment system that is always attached to the body. For instance, a wristband that can be used to check your balance, view credit history, and score and make a transaction. Transaction automation is also a feature that can increase security by connecting to smart sensors and apps that ensure the validity and safety of individual transactions. This extra filter will significantly improve security, especially for international transactions.
The banking Internet of Things benefits also includes the possibility of improved transparency. Clients will have a much more hands-on experience with loan providers, banks, and other finances because data and information will be available in real-time. It will be much more trackable and information will not need to go through a third party and will be immediately available to the client. This is not meant to eliminate bankers, but instead to augment them. AI like Amazon Alexa and other voice assistants are also being used to increase transparency and access between banks and people. Clients can access financial accounts by asking their voice assistant about their bills, payments, and spending reports without having to go to the bank.
These are just some ways that IoT is being used in banking to increase efficiency, transparency, and security. The system of banking, one which has been stagnated for a while, is moving forward like never before, and undoubtedly in a direction that mirrors the values of our current society.