Internet of Things and Its Impact on Financial Services

Internet of Things and Its Impact on Financial Services

Deepika Dhingra (Bennett University, India) and Shruti Ashok (Bennett University, India)
DOI: 10.4018/978-1-7998-5589-7.ch011
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Abstract

The internet of things (IoT) is proving to be a seminal development amongst this century's most productive and pervasive high-tech revolutions. Increased reliance on the internet of things (IoT) is one of the foremost trends, and the financial services industry is a major contributor to that trend. IoT's influence on our daily lives is noteworthy, and it has become imperative for financial services organizations to evolve to adapt to these changes. Digital devices have started to interconnect with each other and possibly with other peripheral entities. Owing to the explosion of these devices and digitization in the banking and financial services industry, businesses are discovering the possibility of IoT in finance to control data and to minimize the risk. This chapter focuses on the impact of internet of things on financial services. It discusses the various applications, trends, challenges, and risks associated with adoption of IoT by financial services institutions. This chapter also discusses Indian and global cases of application of internet of things by financial services institutions.
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Background

Internet of Things (IoT) is taking up all the industries by a storm and is shaping up to the century’s most ubiquitous and prolific technological revolution. Nearly everything we do on digital devices will be interconnected to other digital devices in less than three years, giving rise to one of the quickest IOT developments accompanied by market adoption. IOT will have a significant impact on our lives and hence, financial services companies should start preparing for those changes the sooner the better.

The IoT technology in monetary offerings is to help a consumer save time, work smarter, and live a greater energetic lifestyle. IoT within the banking and finance sector is still in the planning stage but there is an incredible scope of innovation in it. IoT facilitates a financial institution in each aspect, ranging from an increase in sales to higher consumer offerings.

Digital gadgets like computing devices, smartwatches, or even a car will communicate not only with each other but also with other outside entities. IoT is anticipated to have a massive impact on every component of our monetary lives from banking and coverage to fitness, financial planning, and health. Interconnected intelligent gadgets will become ubiquitous and healthy seamlessly into everyday activities. Adopting IoT brings opportunities and challenges across all industries, with clear impacts on manufacturing, logistics, and life sciences. But how will IoT impact financial services organizations, and how can banks and insurance companies make the best of this emerging opportunity?

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