How IoT Testing is Transforming Banking and Finance Service

The Internet of Things or IoT involves three components: devices, computing, and  communications. IoT is heterogeneous in that these three components work together for  intelligent decision-making. IoT strives for interoperability. Devices include objects that can  connect to the Internet; communication happens through Wi-Fi or satellites; computation  happens in a central location on the server.

What is IoT Testing?

Since the IoT network communicates in real-time, security and performance issues can  negatively impact the rest of the network. It is essential to detect any problem areas before you  release the product to the users.

IoT testing helps ensure problem detection early on by validating the product’s performance,  security, and functionality. However, IoT is a fragmented system which can cause difficulties  during testing. You can meet these difficulties by having teams test banking applications and  different components or an automation tool to help you do the same.

How IoT Testing Will Open New Avenues For Banking

IoT Implementation

IoT testing will help perfect IoT implementation. For banking and finance, this is a significant  benefit. IoT can help these industries make their services available to their users on multiple  devices. Users can access their bank accounts from any device that has a digital interface and  connects to the Internet.

IoT will also enable users to perform tasks that are now paper-based or in-person digitally. This  change will help banks improve process speeds and keep users happy.

New Leasing Models

IoT testing can help track the wear and tear of assets, asset usage, and idle time. These metrics  provide vital data points on leased assets. Tracking these metrics for banks and financial  service providers can help them develop new leasing models – turning traditional products into  services.

Seamless Customer Onboarding

Banks can derive information that would help their credit assessment processes by knowing  their customers’ financial behavior. Their digital footprint, which IoT can track, offers a  comprehensive view of the customer’s financial behavior and could provide insights into other

usage patterns of various devices. Looking at people’s Facebook / Gmail IDs or email  addresses to log in to most services may soon be extended to have a unique biometric  signature used for most transactions. This universal digital identity allows banks to create  personalized experiences with the data they capture.

Automated Payment

Automated payments will transform the payment systems of finance companies, retailers, and  technology manufacturers. The opportunity is immense: when machines can perform  transactions with machines in real-time on a marginal cost basis, the traditional concept of  payments will become obsolete. Test automation platforms can empower machines can  perform transactions through the Internet of Things (IoT) and, in some cases, at negligible  costs. By integrating payments into the larger economy, automated payments can create value  for everyone by saving time, enhancing convenience and efficiency for users, reducing  operational costs for businesses, and improving security for their data infrastructure.

Risk Mitigation

Today, tracking high-value goods delivery is already a reality in the trade finance space.  However, with the advent of IoT, the tracking mechanism can be extended to include tracking  asset properties such as temperature and other parameters associated with the specific  shipment involved. For example, if a shipment has temperature-sensitive goods such as  pharmaceuticals or medicinal molecules, creating an alert system to trigger when one or more  parameters reach an extreme value could result in risk mitigation. IoT testing can help these  systems run well and help banks make informed decisions for trade finance scenarios.

Insurance

Insurance Devices that plug into the onboard diagnostic port of cars and transmit information  about driving behavior are now available from businesses. However, cutting-edge solutions  from companies like Tesla Motors promise to advance digitization in the automotive sector to a  new level. Even the Linux-based operating system in Tesla Cars allows for “over the air” feature  updates. Digitization will allow insurance companies to provide tailored insurance to clients  based on their driving styles, engine health, and general vehicle wear and tear.

Benefits of IoT

1. By integrating connected gadgets, people can use the system to build good financial  habits.
2. Through IoT, banks can connect their services to user wearables. These wearables can  alert users of pending payments or deadlines.
3. IoT makes business process automation, customer management, new avenues of  payment, and much more possible.
4. IoT systems can help banks automatically disable user cards in case of cancellation or  late payments, transfer asset ownership, handle requests, and more.
5. Banks can use IoT to process loans instantly and monitor collaterals; this will help  deliver seamless user experiences.

Conclusion

IoT implementation is picking pace with the advent of 5G and technological advancements. According to Statista, by 2023, the IoT market value is set to rise to more than a trillion dollars.

For the banking and financial service providers, this means translating data from IoT into useful information to help them make educated decisions.