IoT in Banking – The Bank of Things

The rapid spread of mobile devices with sensors and internet access, for instance wireless loudspeakers, fitness trackers, smartwatches, smart home devices and now also networked cars, change the way in which we interact with the world around us and with banks also in future.

Flat-rate data plans, the spread of wifi, and in particular the introduction of 5G mobile technology form the basis for the IoT (Internet of Things) business model – they introduce a new era of connectivity between human beings and machines.

‘Banking of Things’ is currently more a vague slogan than a tangible, established business model. It is clear that it makes new, exciting forms of client interaction possible and allows company-wide and cross-sector processes to be handled in an automated and efficient manner. In the context of IoT, new possibilities for business model innovations also open up for financial services providers, away from traditional banking products and services.

For Finnova, IoT is a future topic that we are actively pursuing on our technology radar. In order to be prepared, we are working in various innovation labs on topics such as controversial interfaces for a robo-advisor together with msg, as well as prototypes for language interfaces for the Mobile Banking app with Netcetera. For the Client Engagement Suite, we are implementing a cross-channel notification server. For the branches, we are establishing the ­interplay with smartphones/mobile banking for new forms of cash withdrawal, e.g. via QR code, online and POS authentication or digital signatures. In the context of blockchain, we are evaluating various areas of application, such as trading and storage of cryptoassets and the use of smart contracts.