Some of these challenges include: • IoT is prone to hacking: IoT features a whole network of connected devices and software. It brings a lot of benefits to the financial industry especially in carrying out a transaction which is the core of the business. Or explore the below infographic, which was created at the BAI Retail Delivery Conference where the Deloitte Center for Financial Services hosted a sponsored session on IoT in financial services. All these factors have collectively led to an acute hollowness within the banking system. Make sure you have a plan for updates and patches that includes how you will ensure new IoT devices are compatible with your existing systems for update management. The banking and financial services sector has been deeply affected due to the collapse of businesses, disrupted operations, and an extended delay to an unsought deferral in the receivables. That’s what IoT does. Plan how you will handle any strange or malicious activity originating from your IoT devices. Further, it is estimated that through 2022, half of all IoT security budgets will go toward fault remediation. Banks, for example, can use IoT tech to form a higher-resolution picture of credit risk or to recognize customers as they come through the door for a smoother, more personalized customer service experience. Proactive Service: Service faults and upcoming products changes can be handled much easily using IoT in banking and financial industries. IoT industry is constantly developing and offers new digital devices. Mitigating these risks will be essential for ushering in the tech-driven banking solutions that many organizations are looking to implement. In short, IoT devices offer improved customer service and greater business efficiency, but the benefits of the IoT in financial services cannot be realized simply by purchasing IoT devices — that’s just the beginning. In addition, IoT decision-making often doesn’t include budgeting for security, but greater awareness about the susceptibility of these devices to hacks will likely change that. Think about how to pair IoT data with AI for actionable business insights. This will lead to creating a new system that will enable increased productivity and higher profitability in all sectors. We highlight the following: Customers who opt to use Open Banking apps to manage their banking data will now be in an entirely new trust relationship. which enables easier access to bank information. • Banks that make use of IoT can stay ahead of competitors• It helps banks improve the security of their customers’ accounts through encryption and authentication where these accounts can only be accessed by the customer only.• It is cost saving. • Data Analysis: IoT also helps banks and other financial institutions to collect data through the use of digital sensors and mobile apps. Every digital management strategy should consider IoT security concerns. Higher unemployment rate IoT helps automate working processes that required human brain before, and it means that some employees would simply lose their work positions, especially if these are young and not so skilled workers yet. Wearable IoT and banking, the future of payments. And how can organizations make use of it? Increased transparency By using IoT solutions, banks and financial organizations gain real-time data on their own and their clients’ assets (which leads to effective risk management). Since banks deal with the gathering of data, and massive data transfer, IoT will help banks and financial institutions save time, and work smarter. In other words, it means expanding the capability of the internet beyond smartphones and computers to many other things, environment and processes. For instance, the Commonwealth Bank of Australia has already completed the first global trade transactions between two banks using blockchain smart contracts and the IoT.• Smarter branches: Use of IoT technologies also lead to the creation of smarter branches which may be a threat to the retails bank branches but provides better customer experience. Enhancing the Efficiency of Branch Banking. Instead, think of it as a generator of massive amounts of data that must be made intelligible, accessible and secure. Delivering Personalized Banking and Financial Services. Here, we look at some novel examples of IoT in retail banking. It is this lack of a common standard that can lead to failure in the functionality of IoT devices; even if all hardware manufacturers agree to use one specific standard, there would still be the problem of technical issues to tackle. IoT and Big Data analytics in Banking & Finance: 9 Real-Life Business Examples 1. • Banking on wearables:  At present, there is a growing ecosystem of wearable devices sold at low cost. So IoT in banking industry and other financial services is a technology that is rather difficult to deal with. Spark vs Hadoop: Which is the Best Big Data Framework? IoT technology can enable banks to have better control over a customer’s mortgaged assets, such as cars, and also monitor their health. IoT also prevents fraud through authentication where wearable devices can be used to gather the biometric data of a customer; the combination of such biometrics and strong cryptography make it possible for the information to be secure in the bank’s database. IoT has made it possible for banks to keep a track of all consumer activities and present a solution specific to the needs and desires of the client. IoT directly connects a business with a bank, hence there’s no need to use Visa and … When a new technology comes along that isn’t fully understood yet, buyers often embrace the technology because it’s the “Next Big Thing,” and not because they have a clear vision of how it will benefit their affairs or add value to existing systems and processes. One of such industry is the banking and financial sector where stakeholders are continuously seeking new ways of improving customers experience while providing better services. With IoT, customer experience can be enhanced because the technology helps to reduce queues at the banks; it also guides customers on how to carry out self-service with the help of a virtual assistant. • Tailored Marketing: At present customers are n demands of personalized solutions that meet their varying needs. • Proactive Services: IoT makes it possible for banks and other financial institution to detect service faults and find solutions to them before it becomes serious. • IoT increases unemployment rate: IoT technology reduces the dependency on human efforts as work processes that require the human brain are automated with this technology. Through this, banks and financial institutions can analyze customer’s behaviors and make better decisions that will profit the customers. Imagine using an IoT device like a simple thermostat to control the temperature of your home. With IoT, financial institutions can track the location of a financial crime, identify the type of device used in carrying out such crime and even get to the root of it on time. Considering the costs of purchasing IoT devices without considering the costs that may come after is all too common. • Make transactions easier: Imagine making payments without the need for cash or credit cards but with biometrics such as voice and face recognition. Proper use of IOT is opening up gateways for better, more consistent salespersons, with better customer support and a stronger overall link between banking institutions. Current customers can perform transactions using wearable and car-based IoT devices, and new customers can be signed up for financial services using mobile devices at special events, trade shows or malls. IoT has the potentials of totally disrupting the financial sector in the future and causing all banks to embrace its use due to the benefits it has to offer. 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