“Lo and Behold, let’s put our eyes together for the marriage of IoT and Finance!”
– Said the God of Digitization
Pondering whether or not such a god exists is futile, but discussing the amalgamation of IoT and Finance is inevitable. IoT has a huge role to play in empowering industries and sectors to leap forward into capturing new markets. Similarly, IoT has brought a sweeping digital transformation in Financial Sectors too. But let’s go back to school for a minute, shall we?
What is IoT?
IoT or Internet of Things is a system of intertwined digital or mechanical devices that transfers data between them via a Unique Identifier UID assigned to each individual. IoT helps in connecting and transferring data over the Internet with the help of sensors, processors, and other communication hardware. Once the data is derived, it is then processed and analyzed through the cloud. The systems interact and transfer data based on the information they get through the UIDs. The system’s popularity is because of the almost-to-none human intervention it needs. It is automation in full swing. Basically, transforming our lives and the way we interact with each other.
Now when it comes to Finance, the entire ballpark has changed. We no longer have the archaic approach to transfer money or retrieve customer data. Finance has transcended to the digital era where personalization and custom services are driving the sector ahead.
How much have Financial services grown when Digitized? – A source says USD 249.4 Million in 2018 to a jump USD 2,030.1 Million by 2023! It is undeniable that it is only going to scale-up more than ever.
While we look at the good part, let’s also talk about the practicality of it. Transforming Finance digitally requires planning, quality, and intricacy. Something which Diligen promises you. We provide you with top-notch financial services that meet your vision. Our bookkeeping and accounting services in India and around the globe run on the fundamentals of efficiency and delivery. Apart from rendering services, we also partner with you for financial consultation which helps you streamline your company goals backed up by quality financial decisions. With us, you grow!
How does IoT change things for Financial Services?
Stepping into the digital realm is huge! But the rewards are monumental too!
So how do IoT and Finance work together in tandem to create a better and faster system?
Ø Digital Management – Chief IoT tools enable companies to deliver financial services online. The best example of it is a Digital Payment App – Google Pay, Paytm, Phone Pe, Venmo, Paypal, etc. Here, there is seamless communication and cashless transactions between the device to device using UIDs of two individuals or between an individual and a Business. Online transactions can benefit from availability round the clock. Banks can set or increase or lock the limitations of a customer.
Ø Real-Time Data – This is a game-changer for companies. Preferences and likes of the audience keep changing. The trends of behavior patterns keep changing too. Therefore, it is super important to gather real-time data so companies can give out updates or better services. This data also helps companies or banks to give financial advice to customers.
Ø Customer-Driven Service – It is thoughtful to create an experience that keeps customers at the center. IoT helps you collect user mobile data which you can then analyze to provide a smooth experience for the customer. It gives you the power of prediction with the help of their needs and preferences. Through those insights, your digital financial service can connect to users better than ever before.
Ø Productive Insights – IoT ensures companies can analyze the credit risk of an individual customer. With technological advancement, businesses are now able to gauge the user history and all relevant data with regards to the same.
Ø Smarter Solutions – With the inception of IoT, companies, and banks have been able to keep track of user activities. Through this system, financial sectors have been largely able to monitor and analyze a customer’s history and predict future behavior. Thus rendering timely services and managing activities for them.
Ø Unbreachable Security Solutions – When it comes to Finance, security has always been a tricky one. The ensemble of IoT tools; banks and companies are empowered to render tighter solutions against fraud, theft, or hack. The digital systems created from APIs and Software Kits are robust and the servers are again connected online for enhanced security.
Ø Quick Response to Threats – In case of displacements of bank assets or even theft, the individual or bank can immediately intrude on the process of theft by blocking the asset. This is done almost instantaneously with the help of IoT tools of financial protection and security. The company or Bank can centralize the whole process of analyzing cloud data and wouldn’t need a gazillion different physical branches for the same.
Ø Automation across the board – Automated processes are at the heart of many businesses today. The great ability of automation to erase human errors and redundant tasks provides stimuli for the Financial sector to automate its processes too. Transferring ownership of Assets, Financial requests, and Daily Banking activities have been crucially upgraded into the digital dimension.
Ø Linking Customer Utility to Finance – People can now pay utility bills through payment applications. This important feature can be seen as important by governments all across the globe as we slowly move to fully automated processes.
There are various uses of IoT in Financial services like Insurance, Asset Loans, Supply Chain, Automatic Order Placements, and many more! It’s prime time for IoT and Financial services to go hand in hand. The world is moving to the digital front and an infinitely exponential global market. Businesses and customers are driven in the same direction. All in all, the future of the Financial Sector looks bright.
Diligen makes the financial future of your business even brighter. We are at the apex of creating complete 360-degree solutions and handling the financial front of your business. We have more than 10 years of experience globally and with that, we provide nothing but the best.