The Role of the Internet of Things in the Future of Banking, Financial Services, and Insurance

Abstract

<p>Purpose- The purpose of this paper is to understand how the Internet of Things can be used to reshape the BFSI sector; to understand the current scenario and find various new avenues that can be developed.</p> <p>Design/methodology/approach- This study has used secondary research and literature reviews to get an understanding of the topic. Apart from that, emphasis was given to getting the primary information from the market. </p> <p>Brief Understanding- The Internet of Things is a network or interconnection of computing devices. For the network to exist, internet infrastructure is required, which is used as the facilitator of information transfer. Data gathering followed by analysis is the basic tenet of the Internet Of Things. Information Technology and semiconductor industries are essentially the brain and heart of the IOT. It is through these semiconductor devices that the information is stored and then through the use of the internet passed to the appropriate destination. IT acts as the brain of the system and is used for the analysis of the huge data collected.</p> <p>IOT can act as a game changer in Banking, Financial Services, and Insurance sector and till now has made its presence in the sector. Customer satisfaction and unique user experience are two of the fundamental objectives of Industry 4.0 and IOT can help in achieving these objectives.</p>

Exploring India’s Generation Z perspective on AI enabled internet banking services

“…As the Generation Z is extremely tech savvy, they are seen as ideal targets for providing digital products which may help the organizations to gain a competitive advantage (Dahl et al , 2018). Financial institutions are also in the race to provide their services digitally (Mistry, 2018; Iberahim et al , 2016).…”

“…The study of consumer behavior in online context, and particularly in terms of internet banking, is an interesting area for research (Cummins et al , 2014). Along with this, banking institutions are also becoming interested in internet technologies that enable customers to use the service with utmost convenience (Mistry, 2018; Iberahim et al , 2016).…”

“…Banks, in a move towards shifting to customer centric experiences (Ngo and Nguyen, 2016; Ariff et al , 2013), are now offering unique experiences which use AI and algorithm-based interactions that provide immediate solutions to common and routine transactions (Iberahim et al , 2016). The interactions could be auditory or textual, thereby providing an easy experience in bill payments, personalized investment service or even fraud management (Korzeniowski, 2017; Mistry, 2018).…”

Intention to Use AI-Powered Financial Investment Robo-Advisors in the M-Banking Sector of Pakistan

“…Consumersaregettingawareofthelatesttechnologicaladvancementsaroundtheirsurroundings,either inanonlineorofflineformat.Thebehavioralaspectsofconsumerstowardsm-bankinghaveshown considerablegrowthtowardsitsadoptionandusage (Cumminsetal.,2014;Oertzen&Odekerken-Schröder,2019).Thus,theinstitutionsinfinancialoperationsareinterestedinmobiletechnologies thatcanenhancethecustomers'performanceandefficiencyanytime,anywhere (Iberahimetal.,2016;Mistry, 2018). Therefore, AI-powered Robo-advisor in Pakistan's m-banking sector may provide convenienceandvaluablebenefitstothecustomers.Theresultshaveshownthatconsumersperceive ittobefairandhelpfultechnologyifmadeavailable.Alreadym-bankingcustomers'numbersare increasing day by day, and their trust, satisfaction, and security level awareness is also growing.…”

Augmented reality is the new digital banking – AR brand experience impact on brand loyalty

“…One of the known banks in Pakistan has launched a digital app that focusses on using AR. Banks have introduced chatbots or robo-advisors, or AI digital apps to engage with their customers and provide a good experience (Mistry, 2018; Rosman, 2018). The brand experience will also provide critical insights into AR technology in the banking sector.…”