In today’s interconnected world, the Internet of Things (IoT) has become integral to our daily lives. Alongside this technological revolution comes a concept known as the “Banking of Things” (BoT), which merges the capabilities of IoT devices with financial services. With this concept entering the banking industry, a vast revolution has taken place that facilitates both financial institutions and clients.
In this blog, we’ll go through some questions in this regard, but first things first; what is the banking of things (BOT)?
Introduction to BOT
The Banking of Things refers to the integration of financial services with IoT devices, enabling a seamless connection between physical objects and the banking ecosystem. It involves leveraging the data generated by IoT devices, such as smart appliances, wearable devices and sensors, to provide enhanced financial solutions and services. In addition, it aims to create a more personalized and efficient banking experience for consumers.
What does that mean?
Today, the banking industry has been reshaped to become more flexible and user-friendly. It isn’t a secret that providing clients with a service that matches the excellence standards became banks’ priority. In this regard, by connecting banking transactions with IoT devices, it got effortless to collect clients’ real-time data and have them analyzed. As a result, very customized and tailored financial services can be offered. For instance, a smart home equipped with IoT devices can provide banks with insights into energy consumption patterns, allowing them to create energy-saving loan options or personalized insurance plans.
The future of banks
Every step comes with its own risk; this is the rule of advancement. In order to ensure that we are taking the best advantage of this technology, investors and banks have put a great deal of effort into creating the best possibilities using BOT.
Collaboration between banks and technology providers has opened the gate for new opportunities that can transform the current shape of banking, however, this holds challenges that they try to overcome, such as interoperability among various IoT devices, ensuring standardized protocols, and addressing cybersecurity risks.
People may not know this, but the first use of the Internet of Things in banking; was the ATM. The ATM indeed facilitates sundry easy fast procedures; now the need of being physically in the bank to deposit your money has vanished.
There are no limits to what banking of things can reach, however, there are multiple scenarios. Just like IoT has entered our homes and daily lifestyle, BOT has too. What if your car insurance can be paid using your credit card after measuring the distance you have traveled, all automatically?
More sophisticated applications are also available; cameras and biometric technology sensors are allowed to track the client’s behavior and interactions. This gives a better overall image including better branch design and ATM placements, providing effective customer service.
There are tons of possibilities for how far this technology would go. Will it conduct all of your banking and financial transactions? Will it determine the related financial procedures? The sky is the limit. However, with the banking of things getting into the game, clients are expecting more satisfying service aligned with their needs, which is what technology has never failed to accomplish.