Nowadays, companies are leveraging cutting-edge finance technologies like the Internet of Things (IoT) and Wear OS to manage their commercial operations and procedures. IoT is increasingly becoming an indispensable part of every sector, and fintech is no exception. A pillar of digitalization is what it is called now!
In this blog, we will see how IoT and wearables are changing the business forefront for Fintech. Let us first understand the basic terms IoT, Wearables and Fin-tech in brief.
Let’s understand the terms –
– IoT (Internet of Things)
The basic concept behind IoT is to exchange information among things using the internet without any human intervention. The idea is quite captivating and has the potential to shape and transform the future. Therefore, it is only imperative that within a decade or so, IoT (in integration with AI) will take over most of the human work and will replace it with robots or automated solutions.
While IoT has rapidly broadened its spectrum over the years, it has mapped out every sector, and fintech is no exception.
Wearables or Wear OS, define a category of electronic gadgets that are worn as accessories, implanted in the human body, or can be embedded in clothes so that they can detect and analyze the body’s activities and show the output on its dial.
These devices that exchange information through the internet without needing any human intervention are a perfect example of the ‘Internet of Things’.
FinTech is the abbreviated term for ‘Finance Technology’. The fintech sector deals with the integration of cutting-edge technologies in various commercial and financial verticals.
Impact of IoT and Wearables over Fintech Industry
We already know that the fintech industry facilitates the collection, transfer, and analysis of a huge sum of data for credit risk assessment.
IoT and wearables offer a wide range of applications and smart solutions to the firms dealing in Fin-Tech that enhance payment security, user authenticity, smooth payments, customer care services, etc.
Let’s see what IoT has to offer-
– Customer Data Collection
As IoT connects things and people together and collects user data through the things.
IoT solutions help in collecting productive data of the top-list customers from the user network via intelligent sensors and advanced monitoring systems. This data is then analyzed and monitored in real-time for business insights and to create new opportunities.
Although IoT products are highly expensive, fintech companies are investing in them to bring the future to the present.
– Quick Payments
Smart IoT devices and wearables can also enable a cashless payment transaction, anytime and anywhere. This technique is rapidly becoming the forefront of the digital payment model, replacing the conventional means such as cash withdrawal, debit/credit card payment, etc.
It allows the customers to make an authorized transaction practically from any smart device, such as a wearable, Alexa AI, a car-assistant voice over, smart fridge, etc., without needing a third-party app. The use cases of this revolutionary approach are boundless.
Though the payment through smartphones has now become very common but asking Alexa to make a payment without needing the user to lift a finger or the voice assistant in your car books you a hotel room and making payment without your prior instruction, is another level.
– Next-level Security
Cybersecurity has been a greater concern for the fintech industry, as a minor attack can cause significant damage to the company.
However, the integration of IoT in cybersecurity solutions has changed the entire picture and has shown a pathway leading to better security by using special sensors to gather data about potential suspects and frauds and alerting the concerned entities instantly about any suspicious activity.
The IoT sensors also keep tabs on every individual of the organization and send instant alerts whenever an unauthorized person tries to access the system.
– Enhanced Customer Services
Users are always seeking swift customer care services round the clock regarding any concerns about transactions. IoT-driven approach evolves the conventional methods and transforms them into ‘smart’ ones, enabling flexible and faster customer support.
The Fin-tech companies are using this model to replace their customer service model with a centralized and automated platform integrated with progressive technologies like IoT, Big Data, and Artificial Intelligence.
The finance and bank institutions are also leveraging smart-bacon technology to scan user devices to check their proximity and contact them.
In a nutshell, we are in the age where we witness the coming of a new era, one with digital transformation happening all around the world. And with it, we will see the lasting impressions of the cutting-edge technologies at every step.
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