The growing application of IoT within insurance and banking services is giving rise to new business models focused on innovative data and processes that help users to launch innovative products and services.
So far, the Internet of Things (IoT) is a concept not very evolved in the financial services market, since the complex regulatory environment deters recent adoption. However, the disruptive role of IoT and benefits representing the time to better understand the behavior of customers and offer products tailored to their needs is attracting investments by Fintech and InsurTech segments.
This is evidenced by a report presented by the consultancy Frost & Sullivan. “The growing application of IoT within insurance and banking services is giving rise to new business models focused on innovative data and processes that help users to launch innovative products and services,” says Jean-Noël Georges, director of the Global Frost & Sullivan Digital Transformation. For the manager, the proliferation of new advanced technology companies is pushing traditional finance companies to improve their technologies to stay competitive.
Despite this, these companies still have doubts about feeding sensitive data into networks with innumerable endpoints. And it is that security breach can compromise critical customer data such as addresses, card details and personal information, resulting in loss of brand value for the organization. In addition, the General Regulation on Data Protection (RGPD) will oblige financial institutions to strengthen data protection so that European citizens comply with the new regulation in May 2018.
For Georges, “IoT will have greater acceptance among financial services companies as long as stakeholders collaborate with technology providers along the value chain.” This, in the opinion of the manager, “will allow extensive and deep testing on the impact of IoT technologies and increase the number of relevant use cases. In addition, artificial intelligence and automatic learning will complement the implementation of IoT in banks by providing transparency and key information on the data in real time, “he concludes.
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