The Internet of Things as a concept has become widely accepted by most of today’s modern industries. It provides an array of digital devices that transfer and exchange data through cloud systems, which are analysed in real-time. It’s no surprise that in recent years IoT has made finance and banking much more streamlined, from customer services to improving business efficiency. The internet of things will play a key role in digital transformation and support the growth of many different businesses.
What is the Internet of Things?
The Internet of Things was first coined by computer scientist Kevin Ashton in 1999. Over the next decade, as technology became more advanced, IoT started to gain more traction and has since become a modern phenomenon. IoT allows devices on close private networks to communicate with other ‘smart’ devices around the world, bringing these devices together to create digital autonomy and efficiency. By combining devices, businesses can collect greater levels of data and gain further insights. World Economic Forum’s State of the Connected World report has predicted that there will be 41.6 billion smart devices by 2025. Below, we discuss the impact of the Internet of Things on the finance industry.
Security and fraud detection
Security and fraud detection is one of the key areas within finance that is rapidly changing. IoT devices can be used to detect fraud early and mitigate further risks. For example, IoT systems can analyse and gather user data to detect behaviour patterns and any suspicious activity. In the case when suspicious activities have been detected, the IoT systems can temporarily disable a user’s account while the user has been alerted.
Swiss-based companies have invested heavily into IoT cybersecurity solutions to pave the way for further digital transformation. Swiss FinTech companies, NetGuardians and Finestra, launched an app that can detect fraudulent payments in real-time, and the app uses machine learning and AI to analyse customer behaviour. This illustrates how IoT and innovations are positively impacting data security in the finance industry.
There’s no doubt that IoT applications and devices will help banks and financial institutions as they continue to grow and manage capacity. For example, using IoT-enabled monitoring systems, finance companies can track queue times and measure the ideal number of customers in each branch. Through the use of IoT and data, banks can optimise waiting times for their customers and communicate more effectively with branches in different locations. Banks are always looking for ways to retain their customers and clients, so being able to streamline capacity management ensures more cohesion across branches, paving the way for a more effective service.
Deeper customer insights
With IoT applications, banks can look forward to improving their customer service as they will have the opportunity to gain deeper insights into their customers’ behaviours. This gives businesses a huge amount of capacity to enhance their service, products and overall communication. By utilising IoT devices, banks are able to use data to its full potential.
With finance and banking being highly competitive, it’s important that businesses understand their customers. For example, using IoT application, banks can create personalised services for customers based on their activity. As digital technology continues to evolve, there’s always a need for finance companies to improve their services. Above all, IoT is creating a much more interconnecting and dynamic finance industry.
Swisslinx is a market leader in the finance sector
Swisslinx has an outstanding team of specialist recruiters for the finance sector. Due to our experience and expertise, we have a strong understanding of the financial market and the demands of the industry. Our consultants are able to quickly identify and assess suitable candidates, and we’ve proven to be a reliable talent partner for our clients.
We recruit on both a permanent and contractual basis, and we’ve established a strong reputation for our seamless delivery and expertise. Swisslinx also recruits for other sectors, including digital and technology, and healthcare and life sciences. Whether you’re looking for a new role or you’re a company seeking help with your recruitment, contact the Swisslinx team for further assistance.