The Future of IoT for Financial Institutions
Following are some ways that the Internet of Things could work in retail banking.
Mobile check-in to branch
Mobile banking usage is on the rise globally. Using location aware technologies can allow members to automatically “check in” to the branch before they arrive. That could trigger a process to prepare the branch staff with their specific account information, history, and most likely needs that day. When they walk in the door, they are already first in line and the teller will be fully up to speed on their unique financial situation. It’s a proactive, fast, and customized process for every member.
Location + shopping
Through the location app, you could see that a member was near a “partner” restaurant during the lunch hours. You send the member an offer to have lunch there and pay only 75% of the bill if they use your credit union’s credit card. You could also show all partner joint offers for that location.
Member buys an international air ticket using the credit union’s credit card. As soon as they swipe their credit card to purchase their ticked, you send an offer to the member’s smart phone for preferred exchange rates for the trip if they buy foreign currency within a specific period. A preferred offer for travel insurance could also be provided.
Targeted rewards program
To better understand consumer spending patterns and offer personalized reward programs, early adopter financial institutions have started and are continuing to use analytics to offer customized and targeted rather than standard programs to customers. The ability to access data captured by smart devices of all kinds is helping provide customers with an all-inclusive view of their personal finances and spending patterns in real-time. Pairing IoT with analytics can also enable you to provide location-based, real-time discounts. Using data and location driven insights, you can anticipate needs and offer advice, products and solutions to help them make smart and financially sound decisions.
With increasing pressure to deliver tailored offerings that meet customers’ needs and lifestyles, financial institutions are starting to partner with different loyalty companies to reward customers for their purchases in real-time. This kind of IoT technology uses geographical data to identify offers and deals from nearby merchants that become active as soon as the customer swipes their debit or credit card at said merchant.
The best part about the Internet of Things (IoT) is that possible applications are limitless. There can possibly be more than hundreds of other use cases that can improve the member’s experience, provide more cross-sell possibilities, reduce risk and increase operational efficiency which finally can improve your financial performance materially in the long run.
Data is already being gathered in many instances. It’s all about analyzing it in smarter ways and automatically taking proactive action at the exact right moment based on predictive analytics.