How IoT technology is helpful in enhancing financial services?
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Can you guess how much devices will be connected to the IoT? A whopping 25 billion which exceeds the population of the world. For every person there will be multiple devices and this is to assert how IoT devices will permeate our future. Do you know that around $6 billion worth of money will be invested IoT technology from 2016-2021? Now guess how much will that money reap in the future say 2025? A staggering $13 trillion. Atleast 20000% return on investment is forecasted and it is a huge thing. Financial Services won’t leave this huge opportunity to pass just like that. So it will be a normal trend when highly determined entrepreneurs and shrewd VCs (venture capitalists) will keep betting on IoT applications and technology. That being said let’s take a ride into various sectors where IoT can be implemented with big success. You can familiarize with IoT technology by getting trained in Intellipaat’s IoT training. Intellipaat is the leading e-learning institute which provides competent training on emerging technologies.
IoT may be helpful in deciding insurance services as related to private usage than how insurance premium is traditionally accessed. If your car has sensors then you might want to drive more carefully because insurance providers might soon tap into your driving patterns. It is estimated that 90% of vehicles will be connected to IoT by 2020. Insurance premium will be decided on how you drive, brake and accelerate your car. The premium would be less if the person drives within the prescribed speed limits and high if he drives very rashly. The insurance company can even offer discounts for those with healthy driving habits and those who follow safety precautions.
In-store connectivity provides valuable customer data to financial companies. Credit card companies can do location based advertising which involves in sending notifications to the customers regarding the products and services of the company. Reliable and personalized services are offered to the customers because the information is shared within context. This trend is set to reach new heights as customers’ requirements will be met with appropriate content.
Big data and analytics is used heavily on transactions to detect any fraudulent practices by the banks. Malpractices like double spending can be done where a person can transfer the same amount of money to two persons by manipulating digital tokens which the IoT can avoid. IoT helps in making the data available to the bank networks. KYC processes can be processed easily. A bank mobile app can capture the related photos concerning the documents and upload it to the bank network.
A home improvement loan can be issued when there is a damage or repair to be done to the house in a smart way. A sensor can be installed in the house which facilitates all this process. The loan borrowers get discounted rates and the sensors prevent additional major damage to the house.
Customer relationship management
In order to provide high end services and products to clients, financial services are opting for connectivity solutions. Cloud computing services are important in this aspect where financial companies can store their client data using CRM (customer relationship management) software like Salesforce. This client data can tell as to when exactly the financial company should offer promotions by predicting the customer’s needs. Targeted promotions will lead to increased sales conversions and forge a lasting relationship with the client.
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