Deltec Bank Bahamas, Says Expect IoT to Influence Banks
The Internet of Things (IoT) will significantly influence upcoming changes to the financial industry. As a result, the services provided by financial institutions will be more efficient. If you want more details, keep reading this article.
What is the Internet of Things (IoT)?
The Internet of Things is a system that transfers data without any human involvement. The ‘things’ in this system can include people, animals, inanimate objects, digital devices or anything that has transferrable data and receives an IP address.
There are many different industries that are using IoT. Here is how it works:
- The IoT system is comprised of smart devices that can gather and send data. This is accomplished by embedded processors, sensors, and communication hardware.
- Devices connect to each other to share the gathered data, which ultimately ends up in the cloud.
- The data is analyzed in the cloud.
- The devices that are part of the IoT system may carry out certain actions based on the information that gets communicated.
Although humans must set up the system, the process is conducted with little to no human interaction.
How IoT Impacts Banks
IoT is predicted to make its mark on the financial industry. The rest of this article will explain what might be seen in the near future:
Helps Business Managers Make Decisions
According to Deltec Bank, Bahamas – “IoT has the ability to quickly produce accurate data which can be used to make important business decisions.” The system can also notify business owners and managers when their financial condition has become unstable.
Payments will be made with smart cards, biometrical tokens, wristbands, and other new tools. This decreases the likelihood of someone getting access to your financial information since credit cards will be a thing of the past.
In addition, payments will be under the strict control of smart sensors and apps, creating a secure trading system that allows technology to take charge of transactions. IoT will play a role in this system as a safety regulator.
Improves Lending Practices
Lenders will obtain more data regarding a customer’s history of debt and current assets, enabling those lenders to make better decisions when determining who should receive a loan.
This greater transparency will also make it possible for lenders to customize a loan’s conditions for each customer who receives one.
As data is obtained and processed, each branch manager will have a better idea of how many customers come in on an average day.
This knowledge enables the manager to staff the branch with enough bank employees for assisting visiting customers and accomplishing other necessary tasks.
Increases Customer Satisfaction
IoT will help keep customers happy because branch visitors will be able to schedule appointments instead of waiting in line. Their smartphones will keep them updated on the status of their appointments.
Upgrades to ATMs will be another contributor to customer satisfaction. These machines will be linked to bank branches and operated by smartphones. Using their smartphones, customers can find the ATM that is nearest to them.
The Internet of Things is opening up a whole world of new opportunities in the financial industry, which is why fintech companies and innovative banks are embracing IoT.
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.