Gartner predicts that businesses are on pace to employ 3.1 Billion connected things in 2017, representing 57% of overall Internet of Things (IoT) spending in this same year. In this article, we take a look at the IoT in banking specifically and how it can help to deliver the “bank of the future”.
The Internet of Things (IoT) is one of the most talked about subjects in technology today, and adoption of such is expected to accelerate rapidly in the coming years across all industries; with Gartner predicting that by 2020 there will be 20.8 Billion connected things globally. One such industry seeing rapid IoT adoption rates is banking; Tata Consultancy Services (TCS) predict that average per-company spending for the IoT in banking will grow to $153.5 million by 2018, up nearly 31% from $117 million in 2015. So what’s driving this growth?
The use of M2M communications in banking, for applications such as CCTV, digital signage and ATMs/CashPoints, has been highly common for a long time – enabling providers to remotely monitor and manage these systems. As IoT in banking has developed though, these traditional M2M applications have become a part of the IoT and in doing so, they not only continue to be a part of the bank’s broader network, but are also connected and well positioned for extended, improved services, to truly become a part of the “bank of the future”.
Beyond this progression of traditional M2M connections, the IoT has become a vital part of the evolution of banking technology. Enhancing customer experience and value, while streamlining operations and costs, are key goals for many organisations, and banks today are using the capabilities of the IoT to deliver just this.
One example of how the banking industry is leveraging the IoT are in-branch digital banking machines. In order to reduce queuing times and provide a more flexible service, banks are employing digital banking solutions within their halls to allow customers to access services that would usually be provided by bank employees. This improves customer experience, while also improving operational efficiency.
iBeacon technologies are also leveraging the IoT in banking to provide more personalised experiences for customers, for example by triggering a personal welcome message to the customer’s smartphone or tablet as they arrive in branch, or displaying custom promotions for them on digital displays in the banking hall while they wait.
As well as using the Internet of Things to drive customer service excellence in branch, it can also be used to ensure that high levels of security and compliance are maintained – helping banks to improve risk management. For example, banks can deploy IoT sensors which are attached to assets, improving shipment tracking and to cash flow management.
With businesses in every industry reaping the benefits of the IoT, banks too are successfully leveraging the new and evolving technologies which it enables. For more information on how Westbase.io’s cellular solutions can be used for connecting the IoT in banking, plus other applications, click here.