Fintech Gets Integrated With the Internet of Things
The Internet of Things has become the biggest technological transformation which is changing the way of doing business. It is being considered as “Third Industrial Revolution”. According to Mckinsey, the total market value of the Internet of Things was $900 Million in 2015 and it is expected to grow to $3.9 billion, with a CAGR of 32.6% 2020. The Internet of Things is entering all the sectors in the economy like retail, manufacturing, transportation, energy industry etc.
Financial service industry is highly using it because the financial sectors heavily rely on the gathering and analyzing of data and the Internet of Things is all about handling and transferring of data. It is helping in increasing and improving the efficiency and accuracy of the industry along with providing economic benefits.
The Internet of Things is giving new definitions to the financial service firms and its customer’s experience. It is increasing the transparency by gaining the real time data their client’s assets.
Brett King, CEO of Moven, believes that most payment and financial transactions will be fully automated in the near future. The real time surveillance of the trader’s activities in the stock market and social media can help in making investment policies in future.
There are several ways by which the financial services firms are increasing customer satisfaction with the help of IoT. A report by Internet of Business states that 32% of the customers between the age of 18 to 24 are worried about their over spending habits. The fintech firms are now trying to track the spending habits of their customers by a new banking platform called “Interact IoT”. The main objective of this newly created platform is to help the customers by reducing their spending habits.
On the spending habits of individuals David Webber, Managing Director of Intelligent Environments, says, “With cashless payment methods like contactless, Direct Debits, and Apple Pay, it’s unsurprising we lose track of spending, so we decided to solve this by enabling smart devices to manage our overspending for us”.
But this is just an example of what revolutionary changes IoT can bring in the fintech industry. Max Speur, COO of banking tech firm SunTec, states, “The progression of the Internet of Things within the banking and payments industry can’t be underestimated. With machine-to-machine communication and tracking capabilities, banks can determine location and offer deals in accordance with partners nearby.”
Financial services firms are now becoming more concerned about customer satisfaction. According to a survey by PWC 80% of the respondents said that fintech is the best way to serve a customer. This change in the customer’s perception is because they have become more tech savvy and demand quick service in any platform, unlike the GenX who only believed in lending and borrowing.
Fintech companies by adopting innovative ways are bridging the gaps that were being overlooked from years. Apart of IoT the financial services firms are also introducing “Blockchain’s” which is a distributive ledger technology used for distributing and tracking of cryptocurrencies like bitcoin. It is resulting as a matured and quick payment system and also making the payments faster.
With the adoption of new innovative technologies it can be predicted that the financial service industry will become faster, safer and easier to deal with.