How Is IoT Impacting Banks and Financial Services?IoT has been on the mind of the financial services industry for a while now. “But the IoT may be as broadly transformational to the financial services industry as the Internet itself, and leaders should make an effort to recognize the opportunities and challenges it presents for the financial sector as well as for industries with which [ financial services institutions] work closely,” wrote Jim Eckenrode, executive director of the Deloitte Center for Financial Services, in an October 2015 report.

Banks can use sensors and analytics to gather more information about customers and offer more personalized services. Insurers and commercial banks can also use sensors attached to assets to track shipments.

Delivering Personalized Banking and Financial Services

There are numerous ways IoT sensors can help banks, which tend to deal with intangible assets, especially in the world of online finance.

“Banks will have a more vivid picture of the consumer, understanding how they move and where they spend money,” he says. “This will allow banks to make more accurate lending decisions and deliver more real-time, personalized offers.”

 

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