IoT within banking includes payments, wireless POS (point of sale) and surveillance. IoT enables payments to be pushed to the edge of the consumer value chain. For example, a customer’s refrigerator could sense that the household has run out of milk and order a fresh carton from the local grocery store while the payment seamlessly takes place in the background. With LTE networks, the cost of real-time, remote video surveillance drops drastically.
The process of identification and authentication will experience remarkable change. Today, this process is time consuming, costly and still only partly digitized. IoT creates opportunities for banks to deliver interesting new services to customers built around the idea of safekeeping and privacy.
Innovative automotive insurance underwriters are letting their customers opt-in to using a telematics device in exchange for a reduced rate if they meet certain goals. Telematics devices can be quickly and simply installed to monitor such things as aggressive acceleration and breaking, how far or fast car has been driven, crash detection and more. These metrics were previously unknown to insurance carriers and had to be estimated.
The potential advantages for carriers are numerous including attracting low-risk drivers, improved customer retention, reducing claims costs by improving loss ratios and opportunities for incremental revenue.