Page 49 - Banking Finance September 2021

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shopping alerts about items needs to be purchased, a IOT in Banking / 'Banking of things'
washing machine which alerts about the mixing up of 'Banking of things' means 'Internet of Things' applied to
coloured laundry with the white ones, and also many 'Banking' platform. In Banks, IOT is mainly used to offer
other home automation concepts.
better customer service, Business process automation etc.
5. In industries, smart machines that give alerts about Customers are using Apps/ mobile phones for making
repairs, wear and tear etc. enquiries or doing certain transactions, and Banks collect
the data from a common interface and offer their services.
There can be a lot more examples. Thus banks can offer timely and personalized banking services
to its customers.
The following diagram is an illustration of the
applications of IOT Banks can use IOT sensors to track on various securities, like
vehicles, stocks, machineries and other assets.

Banks can convert the data from IOTs into valuable
informations and it can be used for betterment of their
business products. For eg: tailor-fit loan products for
customers based on the data of their needs, interest etc in
retail, agriculture, SME etc. Also, banks can advise the
customers on better investment options too. This will help
banks to canvass more business and to hold a better market
share.

Other uses of IOT in banking include use of artificial
Intelligence to serve customers better, by reducing the
Source: http:/www.designworldonline.com/tips-on-
designing-for-the-internet-of-things/ servicing time. Eg: chatbots, visual assistances etc. There is
a BMO Harris Bank in Chicago, where the customer is guided
by technology and chatbots. For queries, human interface
Some statistics
is provided with video calls. According to Business Insider
Y China is the biggest spender in IOT [168 billion US
Intelligence reports, by 2022 conversational assistants will
Dollors] in the Asia Pacific Region
help in operational cost cuts of over $ 8 billion across global
Y By 2023, the Asia Pacific region is expected to generate banks.
the most revenue from IOT.
Some banks have started using beacons, for example, to
Y By 2025, there will be 64 billion IoT devices worldwide. send customized offers right to customers' smartphones as
Further, according to McKinsey, 127 new tools
worldwide are attached to the web each second. soon as they enter the branch. And some ATMs now have
live stream video support that allows customers to speak to
Y By 2025 the attached gadgets will be more than 75 billion tellers if they need additional assistance. IOT technology can
Y IOT market in India stands at 130 million US Dollors make ATM smarter enough to contact technician when
annually. needed and send messages to the concerned in an attempt
of robbery or theft.
Y Around 1,820 patents related to the Internet of Things
(IoT) were filed in 2017 in India. And there is a steady In 2017, a bank has introduced RFID-enabled banking cards,
rise after that too.
whereby a branch/relationship manager can identify a
Y With over 37 percent, the smart electrical appliances valued client entering a branch with the card. [The Hindu
segment had the highest application of the total IoT Business Line 24-02-2017]
patents filed by the Indian companies, in the home
automation sector followed by smart system security, Now a days, the same can be done with biometric sensors
with a 16 percent application. /devices with IOT too.

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