Wearables enable the banking institutions to stay connected with their customers resulting in improved services and operational efficiency.
FREMONT, CA: Wearables are changing the lives of the people significantly. Such IoT-driven devices are especially impacting health and wellness aspects. However, the popularity of the wearables has driven various businesses to restructure their operations. The banking industry is one such sector that is eyeing to leverage wearables to allow features such as payments, purchase of stocks, alerts, account balances, and quick reports. The emergence of wearables can even challenge mobile banking in the future. Features like voice recognition and hand-free features further add to the potential of wearables. Here’s a detailed look at how wearables will influence the future of banking.
Payment via wearables will enable customers to make payments by just putting their smartwatch around the near field communication (NFC)-equipped point-of-purchase terminal. Such ease of payment facility will propel the users to use wearables for day-to-day transactions such as buying retail items or paying for coffee. According to a report, wearable transactions will contribute to around 20 percent of all mobile transactions by 2020.
Wearables can allow the banks to offer the most reliable instant connect with the customers. Users can receive routine notifications, such as the possibility of an overdraft or the availability of a monthly statement at their wearable devices. Wearables will also enable the banks to enhance their anti-fraud measures. For instance, banks can connect with customers in real-time instead of directly canceling a suspicious transaction.
Convenience and Marketing Features
Wearables can be easily geo-tracked, thereby enabling the banks to provide convenience features to the customers. For instance, banks can utilize the geo-location of the user and direct him to the nearest ATM. Banks can also open its wearable communication channel to market messages from its retail customers.
The above applications depict the essence of banking services when it comes to wearables. With further innovations in technology, the application of wearables as a banking service platform will enhance.