Regarded as the biggest technological transformation awaiting its burst, the Internet of Things (IoT) is set to embark us upon what could be the second major digital revolution. The expectations are so high that Gartner Analysts have predicted that there will be 25 billion smartphones, smartwatches, wearables, connecting mediums, etc. by the year 2020.
The world has been partially encompassed with intuitively connected devices, and in a short period of time, it will be completely and seamlessly connected through such technology.
Gartner has also predicted that the IoT is going to create an overall benefit of $2 trillion by 2020, as also quoted by IT minister of India Ravi Shankar Prasad. In another study, Cisco predicted that this number could be seven folds.
Industries such as commercial real estate and the insurance sector, have been quick enough to embrace the benefits of IoT innovation by being the early adapters. Insurance companies, for example, have learned and welcomed the opportunities to develop new ways of using increasingly widespread sensor data in smartwatches and smart car technologies to get more valuable and detailed risk data on their customers.
The mass adoption of online banking, mobile banking apps and contactless payments, it is clear that the demand for 24×7 personalised and convenient services has become the bread and butter of all functionalities involving a transaction of some sort.
IoT has led to banks to create engaged and context-aware reward system for customers. However, the technology is capable of much more. It could help banks to improve risk management and innovate to reduce costs even more. This helps create and efficient ecosystem.
This could be an ecosystem that allows consumers from all spheres to view things holistically. As a result the feedbacks will allow banks to provide tailored services.