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What can the Internet of Things provide for Banks?


26 . Juni  2017

Matthew Key

Posts nach Autoren: Matthew Key, Head of Customer Innovation, Global Banking and Financial Markets, BT.


The technologies behind the Internet of Things (IoT) will provide amazing applications to help us in our daily lives. Excitingly, it’s a trend that has only just started. The incredible advances in technology from 4G and beyond; wi-fi near ubiquity and the increasing capability of Fibre Optic Networks shows real potential, not to mention local low power networks.                            

This, combined with increasing small battery performance and the economics behind small sensors, mean that the Internet of Things is here, is real and is only going to grow massively.

We are already seeing applications in usage based motor insurance to our Smart City activity in Milton Keynes assisting with Intelligent Parking (where sensors show whether bays are free), to rubbish collection (is the bin full or empty?) and potential uses in water consumption efficiency, helping to detect leaks easily.

But how can IoT help on the high street? Well we already have location based services, where, if you opt in, you receive offers relevant to you as you wander around the high street from food to fashion. But how about your bank asking if you’d like to speak to a mortgage advisor now as the local branch isn’t busy? It’s possible by using sensors to monitor in branch activity, and advisors could either be in the branch or accessible by high quality two way video.

This is only the start of what’s possible. Some banking experts already talk about how the mortgage process could be radically improved by using IoT and advanced data analytics.

The mortgage for most people is their biggest, and most complex, financial transaction.

Sensors can give you near live information on the state of the house and local activity. They can detect what local buildings are around (rather that static plans). They can tell you local traffic, pollution, as well as provide some in house survey capabilities (how big is the room, does it suffer from damp etc). Sensors can also tell you about ground conditions – for example the water table or erosion.

These things help with risk profiling by the mortgage provider and the underwriters. It helps personalise the mortgage to the person and particular property.

Whole parts of the lengthy chain can also be improved by potentially using Blockchain technology to improve transaction efficiency and using Big Data techniques to improve processing time. This data can all of course by held in the cloud.

Some of these solutions are here today, some are way off but the future potential of IoT is huge.

Find out more about how BT is helping the financial services industry.