Internet-Connected Devices Management: An Explanation
In a significant move, Santander's digital bank, Openbank, is expanding its borders, marking a new chapter in the banking industry. This expansion comes at a time when the Internet of Things (IoT) is transforming the way we interact with financial services.
According to the Cisco Annual Internet Report, by 2023, most connected devices will be at home or on transport. This surge in IoT devices presents a vast opportunity for banks to offer more and better financial services, and Openbank is at the forefront of this revolution.
The concept of Banking of Things (BoT) leverages the IoT to deliver innovative financial services by connecting everyday devices to banking systems. By doing so, BoT provides a seamless, automated, and personalised banking experience.
At the heart of BoT is the interconnection of devices. IoT creates a network of physical devices that communicate data over the internet. In the context of BoT, these devices might include wearables, smart appliances, vehicles, or other connected gadgets that can interact with financial institutions.
The sensors in these devices collect real-time data, enabling banks to automate and streamline services such as payments, account management, and transaction monitoring without manual input. This enhances convenience and reduces friction.
Integrating IoT with technologies like blockchain can secure data exchanges and provide traceability and trust, addressing cybersecurity challenges in financial transactions over IoT networks. This ensures safer and more reliable banking operations using interconnected devices.
BoT also enables banks to offer tailored financial products by analysing user behaviour and device data. For example, a smart refrigerator could trigger automatic payments for groceries, or a connected vehicle could manage insurance premiums dynamically based on usage data.
IoT devices, when combined with AI technologies such as voicebots and chatbots, enable natural, conversational banking experiences. Customers can conduct transactions, receive financial advice, and manage accounts through voice or chat interfaces on IoT devices like smartphones, smart speakers, or wearables.
Security is crucial in the Banking of Things. Geolocalization in smartphones, wearables, and other devices will help fight fraud. For instance, cross-checking the device's location data with ATM or branch information can help thwart identity theft and other crimes.
Santander, a pioneer in digital banking, is well-positioned to capitalise on these developments. Their 2024 Annual Report will provide comprehensive information about their operations, available online. The report will undoubtedly shed light on how Santander is leveraging the BoT to create a smarter, faster, and more personalised banking ecosystem.
Santander's commitment to responsible banking practices and financial education is evident. Their website provides information about their initiatives, such as the Santander Effect. They also offer resources to help customers understand topics like payouts and manage their finances effectively.
Innovation is a key focus at Santander, as seen in their Work Café concept. With Openbank's expansion, we can expect to see more innovative banking solutions that cater to the needs of a digital-first world.
As the number of devices able to connect to the Internet continues to soar, further developments to the IoT will provide the Banking of Things with more tools to enhance and create products and services. The future of banking is undeniably exciting, and Santander is leading the charge.
- Financial education resources on Santander's website aim to help customers manage their finances effectively, aligning with their commitment to responsible banking practices.
- The Banking of Things (BoT) innovation, leveraging IoT, is expected to offer tailored financial products, such as automatic payments for groceries through a smart refrigerator or dynamic insurance premium management through connected vehicles.
- Integration of IoT with technologies like blockchain and AI, such as voicebots and chatbots, will enable natural, conversational banking experiences on various home-and-garden devices like smartphones, smart speakers, or wearables, thus enhancing lifestyle and business operations.
