Every business or entrepreneurship faces unavoidable obstacles and is no different for the novel Fintech industry. Grabbing the attention of potential customers and seeking their long-term loyalty happens to be the main hurdle for this specific venture. Fortunately, technology has helped nourish businesses, and the same goes for fintech establishments.
For instance, the introduction of wearable products in the fintech ecosystem helps the interested parties understand a customer’s exact needs, launch innovative services that cater to their needs and give unique experiences.
IoT- The Magic Spell that Influences Businesses
Imagine a world where lights flood the room on, clapping twice, or digging your favorite food right in through a smart television. It all seems impossible, but inventions like these are already in the making and have identified their critical investors for the same.
The Fintech sector proves to bear promising results upon executing intelligent wearables and IoT. A booming percentage of returns was observed when businesses and organizations invested in Fintech IoT solutions. Such a scenario will provoke rival companies to ultimately use technology in some way or the other to remain ahead of the competition.
Wearable Fintech: Scopes and Advances
Wearable technology has already infested the electronic space, almost on the verge of replacing smartphones, said a survey. Since these hi-tech gadgets come with intelligent software, they can give customers personalized services, understand their wants and needs and solve analytical problems. It is predicted that smartphone users would move from smartphones to switch to welcome wearables.
How IoT and Wearables Prove to be a Goldmine for the Fintech Sector?
At this stage, it is difficult to say whether the Fintech industry will carry forward the baton of developing technology. Still, it has been crafted to make use of users’ data. It is believed that such deep involvement between a user and gadget will help companies and businesses realize essential services and solve their needs and crucial problems, create novel services and provide a hassle-free experience.
Data retrieval: IoT appliances and intelligent gadgets accompany a user at all times, proving to be a rich source for customer feedback. It is advantageous for the banking sector as massive amounts of data will accumulate through the gadgets’ sensors and robust AI systems that can relay this information to Fintech companies. Such information is crucial as it helps fintech companies to provide secure and easy transactions.
Individualized customer solutions: client bank interaction has now been made more deep-seated, achieving customer-centric goals. The use of smart wearables and IoT devices have enabled these businesses to understand a particular customer’s behavior by analyzing their data. Through this, the fintech industry can offer great scrumptious deals suited for the customer, maximizing the company’s profits.
Wearable transactions: Long gone were when customers used credit and debit cards for transactions. The fintech industry and electronic banks have shifted to contactless payments. The entry of wearables allows consumers to make quick payments at the drop of a hat by a simple tap on their Fitbit or smartwatches. Just like how generation X has paved the way for millennials and Gen-Z, traditional banking is successfully being replaced by wearable gadgets to exchange finances.
Leading banks all across the globe have already joined hands with technology to give promising solutions to potential customers that have signed up for this mega change.
Staying ahead of time: Bringing state-of-the-art and modern gadgets to the Fintech space is not the only aspect that attracts customers; it’s about giving them an all-inclusive experience.
Today as we talk about making transactions using our wrist, another innovative invention is already in the pipeline that would be even better than the existing technologies. The current population relies heavily on trends and fads and expects Fintech organizations.
There is cutthroat competition in the fintech sector. It looks like every other bank is plotting aggressive marketing strategies and putting their best foot forward to make up-to-date services only to beat competitors and earn loyal customers.
Some prominent examples of how this is done include:
- IoT-assisted cash payments from ATMs: Banks in Australia and New Zealand have recently begun accepting smartwatch payments. Money kept in the ATMs can be accessed using Google Pay, Samsung Pay, FitBit Pay, and Apple Pay.
- Smart user testaments: Wearable apparel can now reduce fraud, cyber-attacks, and illegal hacking. These devices have sensitive sensors that capture the wearer’s unique information ( biometric data) and store them, giving intense protection to users’ data.
- Simple functions on smartwatches: E-banking services depend on encrypted logins and passwords, creating the need for a user to have a keyboard or a small screen to carry out banking operations.
- Other features: Through fintech wearables and IoT’s intelligent features, customers may use their voice to pay bills, make requests to banks and check their account status.
- Better Risk assessments: More the people that sign up for fintech services, more is the data accumulation and better would be the risk assessment by the sector. These industries can design new and improved models of risk assessment.
Tapping deep into a user’s behaviors, such as their previous bank, expenditure patterns, monthly income, and work hours, will help banks tailor specific offers and deals with negligible risk. Similarly, understanding the consumption patterns of alcohol and tobacco lifestyle of a user will alert banks while providing insurance policies.
The Bottomline
Technology has penetrated every aspect of our lives and is here to stay. Businesses and financial services that welcome this new change will always remain one step ahead of their counterparts. The near future will boast of people getting to experience protected payments, attractive and personalized discounts, and enhance a user’s banking experience.
Such devices and gadgets also help businesses increase by making intelligent decisions based on customer information. We are yet to witness the revolutionary changes caused by the entry of Fintech solutions and wearables, but they sure have already borne optimistic outcomes.