What's IoT doing in BFSI?

IoT has made an impact on everyone. We are now connected to each other, and the internet, through several electronic devices. These interconnected intelligent devices have become ubiquitous and seamlessly fit into our day-to-day activities.

But, IoT is not restricted to retail and manufacturing. It is slowly, yet surely, also changing the BFSI industry.

IoT in Banking

Customers today demand convenient and personalized services whenever possible. A huge number of people are opting for online banking, mobile banking apps and, most recently, contactless payment technologies. Banks can implement IoT technology to track and analyze the behaviors and demands of their customers. With this information, they can focus on providing customers with a more personalized experience, context-aware offers, and insights. Banks can also achieve a new level of understanding of the needs of both consumer and business clients, thus, attaining a new level of customer intimacy. IoT can help banks innovate and devise better ways to improve risk management and improve overall operational efficiency. Implementing IoT in the banking sector will provide business clients and consumers with a holistic view of their finances. Also, banks can present their customers with more tailored products and solutions.

IoT in Insurance

Today, insurance companies are leveraging connected devices for several different initiatives. Some insurance companies are adopting the use of automotive sensors. These sensors help insurers in gaining better information about product design defects, so that they can price coverage and premium more accurately in case of an automobile casualty. One of the interesting implications of IoT in insurance companies is providing users with usage-based insurance. In a personal life and injury insurance, all kinds of risks are covered under a single policy. But, by using real-time and fine-grained data about personal behaviors, firms could fine-tune coverage to potentially add or eliminate certain risks. This would certainly make the pricing task a complex procedure, but would yield improved customer satisfaction.

IoT in Investment and Wealth Management

Using IoT in investment and wealth management can help businesses and consumers undertake tailored investment decisions and asset allocation based on behaviors, personal choices, and geographic considerations. For example, IoT can provide a better understanding of a client’s interests and purchasing patterns. This could enhance their wealth management. Investment companies could also offer tailored solutions based on these data. This kind of analytical approach can potentially provide a more accurate model of investor risk tolerance.

IoT in Commercial Real Estate

The emergence of real-time sensors and devices in real estate is bringing more transparency in the process of finding and leasing commercial space. With IoT technology, companies are using sensors and smart devices to monitor the level of human interaction within common areas, on elevators, and in the surrounding neighborhood. This data can be used by analysts to value and price properties more accurately. If this data is exposed to a public marketplace, it can reduce friction in leasing or buying properties. Also, investors will have greater transparency regarding property values.

The Internet of Things (IoT) undoubtedly is one of the biggest technological transformations in today’s world. Creative use of this technology can help financial institutions meet, and even exceed, the expectations of their customers and provide a better experience.