Consumer Banking Amidst the Internet of Things (IoT)
While financial services isn’t typically the first industry that comes to mind when we think about the Internet of Things, there’s no denying that “IoT” has infiltrated consumer banking. From online and mobile banking apps to smart ATMs. IoT enables services that are both convenient for customers and have the potential to build valuable customer loyalty and reduce unnecessary cost for banks.
Mobile banking allows banks to collect data from smart devices and use that data to anticipate the needs of customers. For instance, by analyzing spending habits, banks are able to provide customized financial advice. With access to location data, they can determine debit or credit card fraud by verifying discrepancies in device and transaction locations. IoT devices also help banks make smart ATM placements. Tracking actual machine usage per location allows them to build convenient ATMs for customers and reduce the number of superfluous machines.
As with any IoT movement, however, there are privacy and security concerns, both for customers, who are wary of unauthorized access to their financial data through IoT devices, and for the institutions that must protect customer data.
To maintain the utmost level of privacy and security with IoT devices and applications, financial institutions should perform regular web application testing and mobile device security assessments to identify and mitigate vulnerabilities that leave the organization and its customers open to exploitation.