Page 38 - Banking Finance September 2022

ARTICLE

"INTERNET OF

THINGS"- THE GAME

CHANGER IN

BANKING AND

FINANCIAL SERVICES

Abstract:

The Internet of things (IoT) is considered to be the next big thing in financial sector. It is fast becoming a disruptive
technology business opportunity, with standards emerging primarily for wireless communication between sensors,
gateways, controlling units, cloud-based services and other gadgets in day-to-day human life, all in general being referred
to as "Things".Internet of Things (IoT) provides customer data that helps banks to identify their customer's business
needs and value chain, e.g., retailers, suppliers, and distributors. The data also lets the banks gain insights into customers.
In the agricultural sector, farmers who are the bank's customers can gain solutions from the Internet of Things (IoT).
For instance, banks are able to analyse agricultural output in addition to other crop farming conditions that allow the
banks to estimate the crop output value. Based on the crop yield calculated through Internet of Things (IoT), the banks
can provide flexibility based on expected yield, frequency, and crop performance, when it comes to financial terms.
Such knowledge will help the farmer and the banker develop a stronger relationship. This article addresses the Internet
of Things (IoT) as the main enabling factor of promising paradigm for integration and comprehensive aspects of several
technologies for banking solution.

Definition:
About the author
The Internet of Things (IoT) describes the network of physical
Chetan Saraogi objects "things" - that are embedded with sensors,
B.E, CAIIB, Senior Manager (Faculty)
software, and other technologies for the purpose of
Union Bank of India
connecting and exchanging data with other devices and
Staff College, Bengaluru

38 | 2022 | SEPTEMBER | BANKING FINANCE