Market Research Report
Internet of Things in Retail Banking - Thematic Research
|Published by||GlobalData||Product code||669413|
|Published||Content info||45 Pages
|Internet of Things in Retail Banking - Thematic Research|
|Published: July 6, 2018||Content info: 45 Pages||
The idea of IoT in banking can feel a lot like a vendor construct "pushed" onto the industry. Connecting "things" to the internet makes more sense for industries that have more "things" to connect (e.g., manufacturing, healthcare, and insurance). Retail banks don't deal in such tangibles. Instead, the opportunity is around the "connected customer" - knowing where they are, and what they're doing, and offering more personalized products and services based on this information.
Long-term, entirely new levels of contextual guidance become possible. For example, the second a customer enters a car lot or their favorite retail park, a bank could notify them of how much money they can borrow, and at what rate. Medium-term, as the concept of connected cities comes to fruition, banks could send a warning to avoid certain retailers where they typically over-spend. Banks could even automate day-to-day account management based on declared goals and sensors to optimize financial outcomes for customers, all of which goes toward helping banks establish themselves as the "trusted advisor" in the move to open banking.
Most banks are already well underway with the big, multi-year transformation projects around cloud and big data analytics (BDA) to enable such experiences, but IoT will make the data aspect of that much harder. Data types where source-complexity and formats hinder consumption, for example, require new skill sets and new analytical techniques to discern trends. The volume of data - and the velocity of it - will mean new data warehousing and cloud programs.