The Internet of Things (IoT) has exploded as a concept within the last 18 months as users and innovators have the technology and user base to implement large scale solutions.
The speed of available broadband and mobile connections and the number of connected devices have grown symbiotically. Growth is expected to continue rapidly as by 2020 Cisco estimates there will be nearly 50bn connected devices and 2.5bn people online across the world.
IoT and Disruption
While the IoT may be seen as most disruptive within the retail, manufacturing, transportation and energy industries, there are going to be opportunities created within IOT financial services.
This is because the IoT is based on the transfer of data and using it to improve the customer experience.
Already in the insurance industry, we are seeing apps being used to align driver behaviour with the insurance premium being charged, with drivers having their performance monitored used GPS focused apps.
Drivers that are judged to have driven well are rewarded with lower premiums and the insurer is given valuable data about the behaviour patterns of its customers.
IoT Financial Services
The IoT may be able to tailor user experiences of the finance sector, increasing customer engagement and increasing retention.
An example could be a customer at a car dealership lookin
g to make a purchase on finance. The bank could automatically send the user information about the interest rate and amount of finance they have just by opening an app within a retail location.
Wired also identify the possibility of ATMs that work with your phone rather than your debit card, removing the need for plastic entirely when combined with solutions such as Apple Pay.
The financial services industry is undergoing large-scale digital disruption and as the internet of things evolves and grows it is destined to play a role in the changing face of the industry.
VIP Apps Consulting has extensive experience within the financial services industry with the knowledge capabilities and operational track, to help organisations implement the process changes, optimisation and innovation to realise the financial value in a customer driven market.
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