Page 40 - Banking Finance September 2022

ARTICLE

signal and continues to spend, the wearable would send
a shockwave to their wrists, which served as a potent
reminder that their spending and the daily limit are not
very well.

Enhanced Banking Experience
Internet of Things (IoT) gives timely insights and
individualized experience to customers. Device
connectivity enables a customer to schedule an
appointment and be able to check it inside their
smartphone. The customers will know when is their turn
to stand at the counter, instead of waiting in a line.
Apart from this, the bank also keeps the customer's visits
in their database, the services they use whenever they
visit the bank, and their queries.

Efficient Branch Banking that the number of connected wearable devices will get
The modern branch system in banks is under threat from to over 2.5 billion by 2024. Thus, more people will
increasing operational costs. Customer's traditional undoubtedly be making use of these devices for
banking habits are also being challenged by COVID-19. everyday activities in the coming years.
People were advised to use contactless payment and
avoid handling banknotes as much as possible since the Disadvantages of Internet of Things in
COVID-19 virus can survive for days on notes, speeding
Banking:
up the disease's spread. While banks are keen to
maintain the traditional banking approach and ensure Potential Hacking
that it adds value, financial institutions need to use As the number of connected devices increases and more
technology to meet demands.Banks use the Internet of information is shared between the devices, the
Things (IoT) technology,for example biometric sensors potential of a hacker to steal confidential information
can be used to gather user data while entering the bank also increases.
and forwarding the information to the primary system.
Utilizing smart branches allows bank managers to Management of large number of IoT devices
reduce both the number of staff and the maintenance Enterprises may eventually have to deal with massive
costs while also reducing the waiting time for the client. numbers of Internet of Things (IoT) devices, collecting
The managers create a connected system of andmanaging the data from all those devices will be
communication between different branches at different challenging.
locations. Using the Internet of Things (IoT) system,
virtual branches can be created, where there are no
Mass corruption of Internet of Things (IoT)
real employees, a user often gets guided by a system
system
or chatbots based on technology. There are random
If there is a bug in the system, it is likely that every
questions, so the chatbots can use video conference tools
connected device will become corrupted.
to contact a real human consultant.
Making Wireless Settlements Lack of International Standard of
Internet of Things (IoT) in monetary solutions, is compatibility
additionally changing exactly how individuals make Since there is no international standard of compatibility
payments. Wearable devices are replacing smartphones of Internet of Things (IoT), it is difficult for devices from
and traditional credit cards, in making wireless different manufactures to communicate with each
payments as well as cash withdrawals. Statistics predicts other.

40 | 2022 | SEPTEMBER | BANKING FINANCE