Internet of things: Mobile banking (of things)

first_imgThe Internet of Things (IoT) has gained a considerable amount of hype as the “Next Big Thing” to change the world as we know it. Applications of IoT are thought by some to be limited only by the human imagination. From simply controlling your home (e.g. – lights, thermostat, etc.) with a smartphone, to life saving medical and healthcare systems, IoT is pervasive and growing rapidly.The financial services industry has recently started experiencing the IoT disruption in the form of mobile banking. While mobile banking is seen as an incredible advancement in financial services, it may only be the tip of the iceberg for the Bank (Credit Union) of Things.In recently published whitepaper, The Bank of Things: How the Internet of Things will Transform Financial Services, Author Ian Webster of Accenture discusses what he refers to as ‘Customer 3.0.’ Much like I discussed in my last article, Why Attracting Millennials Requires Big Data/Analytics, Webster’s ‘Customer 3.0’ is “hyper-connected, highly informed, very demanding and spoilt for choice. They expect to be engaged as individuals, and on their terms — when, where and how they want.” This new information expectation is requiring banks/credit unions to think of innovative ways to transform their data into valuable assets that provide a better customer experience.Examples of IoT in Financial Services‘Customer 3.0’ is being conditioned to expect much more information in all areas of their lives with retail banking being no exception. IoT is still in its adolescence in the financial services industries but there are several practical example of IoT in banking that do not seem far-fetched.Consider the following example: Loans are a major source of revenue for financial institutions but with interest rates at historical lows, differentiating one loan from another is difficult. So how do you ensure someone uses your financial institution for their next loan? By being the first image a customer sees when deciding to make their next big purchase. With advanced geo-tracking using beacons (IoT technology), financial institutions can send out the most accurate and timely marketing alerts. continue reading » ShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more