Increased reliance on the internet of things (IoT) is one of the biggest trends in enterprise technology, and the financial services industry is a big part of that trend. And due to the nature of financial business, both the promises and the risks of the IoT in financial services are great.
To demystify the IoT a bit, an IoT device is anything with processing power that is not usable as a computing device. That covers point-of-sale (POS) devices, security motion detectors and even internet-connected coffee machines, to name a few. Gartner predicted that the world will see nearly 21 billion IoT devices by next year.
Many IoT devices used in the financial services industry are customer-facing. Banks, for example, can use IoT tech to form a higher-resolution picture of credit risk or to recognize customers as they come through the door for a smoother, more personalized customer service experience. Businesses can use IoT devices to collect more data about customer preferences and behavior, and financial institutions can gather real-time data from wearables to enable personalized product advertising.
Current customers can perform transactions using wearable and car-based IoT devices, and new customers can be signed up for financial services using mobile devices at special events, trade shows or malls. Home devices like smart speakers allow consumers to open accounts through voice commands, which can trigger back-office workflows.
In short, IoT devices offer improved customer service and greater business efficiency, but the benefits ..
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