The Internet of Things has seen a rising impact in our lives as technologies find ways to connect and communicate with each other to make our lives easier.
It is an imminent evolution that the finance industry will experience as devices send and receive data about our choices and preferences. IoT allows us to connect the physical and virtual world so that we can optimize operations and reduce expenses.
According to Deltec Bank, Bahamas, “When we can become more efficient with data, then productivity levels rise. That outcome can lead to an improvement in all of our lives.”
What Are the Benefits of IoT in Finance?
The Internet of Things provides consumers with access to rewarding services. Banks and credit unions can analyze the usage of credit and debit cards at ATMs, create useful online services, or remove unwanted products to improve their bottom line.
Customer data that comes from IoT structures help financial institutions make it easier to identify the business needs of each customer. It can spot individual value chains, from suppliers to retailers, while gaining useful insights to promote better revenues.
Deltec Bank “The information that customers provide to banks creates more opportunities to build wealth or offer financial assistance. It opens the door to greater customization so that positive outcomes become possible for all parties in a transaction.”
IoT even makes it possible for agencies to analyze industry outputs to estimate their value. This option allows for a straightforward approach to lending products so that less risk is present in the transaction. When these attributes combine with the improvements to fraud prediction, the Internet of Things offers a level of value that few innovations can replicate for the industry.
Concerns to Address with IoT
IoT offers several unique benefits that can help the finance industry. There are also a few concerns that require a closer look to ensure that we can maximize the value of this technology.
Privacy is the primary issue under advisement with IoT today. All information sent through the connected devices would become available to financial institutions when they are associated with the industry. That includes access to the location of their customers.
There is also a data security risk to think about with IoT. A breach could lead to repercussions that would lead to massive customer damages and high levels of liability. Even the implementation of the latest security technologies and policies that allow for corrective measures may not be enough to reduce the risks of this concern.
Deltec Bank, Bahamas, “The increased use of IoT devices has led to an enormous increase in the levels of data everyone generates. That information has the power to transform a lot of lives. It can also change the way that we all do business because of its emphasis on customization.”
Financial institutions must convert IoT data into something valuable for it to be a meaningful investment for the industry. Everything is connected, or it will be soon. Adapting to what the Internet of Things can provide will help agencies to improve their market share and provide better services to each customer.
Disclaimer: The author of this text, Robin Trehan, has an Undergraduate degree in economics, Masters in international business and finance and MBA in electronic business. Trehan is Senior VP at Deltec International www.deltecbank.com. The views, thoughts, and opinions expressed in this text are solely the views of the author, and not necessarily reflecting the views of Deltec International Group, its subsidiaries and/or employees.
About Deltec Bank
Headquartered in The Bahamas, Deltec is an independent financial services group that delivers bespoke solutions to meet clients’ unique needs. The Deltec group of companies includes Deltec Bank & Trust Limited, Deltec Fund Services Limited, and Deltec Investment Advisers Limited, Deltec Securities Ltd. and Long Cay Captive Management.