Scope of Banking Wearables

Weareables use IoT technology that banks can levearge to increase their reach to a wider customer base.

FREMONT, CA: Weareable digital technology is growing at a rate of 31.4 percent growth from 2018, and onwards. Weareables are integrated with digital technology that uses the internet of things (IoT). Every second, 127 new IoT devices are connected to the internet. Business Insider estimates that by 2025 there will be more than 64 billion IoT devices. The growing field of IoT has much economic potential to support banking functions.

Currently, weareables offer functionalities like making payments. Soon, customers will have a wider banking-related use of weareables. Potential possibilities include:

Payments: Many restaurants are adopting near field communication (NFC) technology. It allows  consumers to pay for food items, retail items, and services by scanning a NFC-equipped point-of-purchase terminal with their smartwatch. Research shows that wearable transactions will comprise roughly 20 percent of all mobile transactions by 2020. Total transactions will amount to more than USD 500 billion.

Notifications: Weareables are a valuable source of customer resources as they customers wear them most of the time, Banks can access a wide customer base for maximum exposure and give them instant access to their transactions. Banks can send updates of a monthly statement and warnings for overdrafts. Wearables can allow banks to streamline anti-fraud processes. Weareables can automatically block suspected fraud attempts. In other cases, they can contact the customer in real time to undertake the right course of action.

Inquiries: Weareables can allow customers to make inquiries, transfer funds, and complete transactions regardless of time and place.

Geolocation features: Weareables can be geotracked by banks to help users access the nearest ATM and banks. Banks can enter partnerships with relevant retail businesses to send marketing messages to users.

Banks can encourage users to keep their data safe by encrypting data like PIN, and account details. Banks can send notifications and alerts about safety measures that users can implement on their own. For weareables to deliver the best results, smartphones need to provide additonal features to acomodate weareables' widening capabilities.

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