FINAL WORD
IoT driving personalisation
in banking
T
ill recent times, the limited amount
of information we shared on our
whereabouts and lifestyle choices
on a daily basis has been in the public
domain. Now, our online interactions on the
web, social media among others as well as
transactions while shopping or on any system
helps create an ongoing picture of what
choices we make and how we live our lives.
By connecting the devices we use every
day to one another and gathering the data
from all sources, the resulting explosion in
data and opportunity is humongous. It is
not surprising that businesses want to see
how best to leverage this huge data through
social and Internet of Things integration.
We often hear of The Internet of
Things in respect to industries such as
retail, health and wellness, energy, and
transportation. With the ability to gather,
transfer, and analyse data, the inclusion of
IoT initiatives in the financial sector is also
being recognised more actively, especially
in retail banking.
As IoT devices generate data with every
transaction and interaction, collation
and analysis of these data helps to build
solutions that help customers control
spending and better manage their wealth.
These IoT data pertaining to customer
profiles, behaviors, earning and spending
patterns also help improve customer
experience, product development and backoffice performance.
Customer and employee digital
experience becomes a key factor while
deploying IoT, thereby making static,
physical objects engaging and smart.
We will be seeing customer experience
overtake price and product as the key brand
differentiator. Potential customers will pick
78
Sunil Paul is Co-Founder and COO at Finesse
the brand that is easiest to work with, before
they will consider price or brand loyalty.
Imagine a scenario where a bank customer
is greeted upon entering the branch and prequeued for improved service. This is possible
using mobile geo-location capabilities
combined with beacon technology. Similarly,
technology can monitor and take action
on behalf of the consumer at video tellers
and†kiosks in bank branches.
Taking the customer experience
further, the ATM experience can be
enhanced by augmenting it with the
smartphone or smartwatch and skipping
debit card usage. Retail banks can also
place sensors in stores to suggest product
details, discounts and recommendations
through consumer smartphones.
This obviously works because it is
proven that consumers who receive
personalised messages are more
likely to buy. By connecting the retail
banking environment using IoT, banks
can dramatically change offers with
personalised, contextual messages.
Payments for both consumers and
businesses are getting streamlined by
reducing the physical process involved with
making a transaction and consequently
making the payment function more invisible
to the purchaser. This is like Uber debiting
its service charges.
We see this in rollouts of contactless
payment systems such as Apple Pay
and Google Wallet. We are also seeing
smartphone apps, some linked to a
particular financial institution or a bank
and others independent, which make it easy
for customers to make mobile payments instore and effortlessly split their restaurant
bills with friends.
This experience can also be taken
outside of retail banking with preapproved financing or customised
loan proposals based on data analysed
from different integrated IoT devices.
Insurance companies can use predictive
analysis using driver behaviour data
to sell appropriate insurance, health
monitors can communicate clients
well-being, and smart homes can
share structural data for homeowners
insurance. The possibilities are infinite!
For financial companies to innovate
and provide customers with experiences,
it is important for them to have connected
products and environments as a part
of their roadmap. The path is set and
financial institutions need to consider how
best to adapt to continue to thrive in a
connected world.
Issue 01
INTELLIGENT TECH CHANNELS