IoT steadily remains on the march, setting tech trends and reformatting life as we know it. In fact, personal finance is only one of the things that it’s going to drastically change. But although attacks on IoT devices were up 280% in 2017, its increasing momentum and strong influence have led analysts to consider it a primary transforming agent for financial services, according to Deloitte.
Here are the three major ways IoT is doing just that.
More Data Collection, Leading to Better Financial Decisions
Ultimately, the limiting factor that defines what we can do with our personal finances is the personal data that is available. That is to say, the data that is currently only gathered by banking, credit cards, and accounting applications. Once the Internet of Things becomes fully realized, however, the sheer amount of active sensors in our material possessions will tell us a lot more about our personal data than ever before.
This record amount of finance data will then be paired with such technologies as machine learning AI and Augmented Reality to reach their full potential. The final result will enable us to conveniently and efficiently reach the most effective financial decisions. For example, once vehicles are incorporated into the IoT, driving history and performance records will become available to insurance carriers, thus allowing them to determine the best insurance plan based on your personal driving record.
Financial Assessments Will Become More Effective
Thanks to IoT, financial risks will be greatly minimized, leading to better credit and loan options, building off of the data collection mentioned above. Because of the large repository on personal finance data that IoT tech will gather, banks will more easily know which offerings to recommend to you. Factors that determine credit score will be overhauled, incorporating a new kind of assessment called the “pattern of life” or POL analysis. In the business world, a corporate finance specialist can utilize the Internet of Things to optimize financial processes, harnessing data from interconnected devices to make informed decisions and drive business growth.
This works best for the newer client base that either have limited credit history or don’t have one at all, as it gives banks other factors to work with to find out whether they’re credit-worthy. Another interesting thing is that creditors can partner with manufacturers to make tailor-made offers to customers that have noticed that the items they purchased from those manufacturers have failed. Those in the property business will also be able to more accurately bill tenants for their use of amenities and damages.
Customer Service Will Become More Precise
Data gathered by IoT will enable customer service to tightly hone in on customer concerns as well. This means that customer service will be a lot more pointed and precise, developing better solutions for consumer issues using AI technologies such as deep learning. This will result in the development of friendly customer service AI that will very easily come up with fixes for any technical issues that might arise, and in more sectors than just personal finance, too.
The Internet of Things will surely revolutionize more than just personal finance; possibly reality as we know it as well. With the unprecedented scale of the network and data sharing that will arise from this concept, personal finance will become more personalized, convenient, and secure.