"INTERNET OF THINGS"- THE GAME CHANGER IN BANKING AND FINANCIAL SERVICES

The Internet of things (IoT) is considered to be the next big thing in financial sector. It is fast becoming a disruptive technology business opportunity, with standards emerging primarily for wireless communication between sensors, gateways, controlling units, cloud-based services and other gadgets in day-to-day human life, all in general being referred to as "Things".

- Chetan Saraogi

Abstract:

Internet of Things (IoT) provides customer data that helps banks to identify their customer's business needs and value chain, e.g., retailers, suppliers, and distributors. The data also lets the banks gain insights into customers. In the agricultural sector, farmers who are the bank's customers can gain solutions from the Internet of Things (IoT). For instance, banks are able to analyse agricultural output in addition to other crop farming conditions that allow the banks to estimate the crop output value. Based on the crop yield calculated through Internet of Things (IoT), the banks can provide flexibility based on expected yield, frequency, and crop performance, when it comes to financial terms. Such knowledge will help the farmer and the banker develop a stronger relationship. This article addresses the Internet of Things (IoT) as the main enabling factor of promising paradigm for integration and comprehensive aspects of several technologies for banking solution.

Definition:

The Internet of Things (IoT) describes the network of physical objects "things" - that are embedded with sensors, software, and other technologies for the purpose of connecting and exchanging data with other devices and systems over the internet. These devices range from ordinary household objects to sophisticated industrial tools. Examples of Internet of Things are connected appliances, smart home security systems, autonomous farming equipment, wearable health monitors, and smart factory equipment. A light bulb that can be switched on using a smartphone app, by using voice command or by a motion sensor is an Internet of Things (IoT) device and system.

History: