Leveraging IoT-Driven Customer Intelligence for Adaptive Financial Services
DOI:
https://doi.org/10.63282/3050-9262.IJAIDSML-V4I3P107Keywords:
Internet of Things, Personalized Banks, Financial Services for Smart People, FinTech Innovation, Customer Experience, IoT Devices, Context-Aware Systems, Mobile Banking, Real-Time Analytics, Secure Banking InfrastructureAbstract
The swift integration of IoT into the banking and financial sector is thus transforming the domain, thereby effectuating a transition ranging from general bank services to hyper-personalized and context-aware financial experiences. The paper tours the functions of IoT in banks collecting real-time data from the modes of customer interactions across various touchpoints like mobile apps, wearables, ATMs, and smart home devices to produce personalized financial innovations for behavior and preferences of an individual. By using the data-generating capabilities of IoT and the power of advanced analytics and machine learning models, contextual offers of credit, location-based promotions, and predictive offers of financial advice can be provided to enhance customer satisfaction and loyalty. The study presents a layered architecture depicting the flow of data from IoT devices to the analytics platform, providing insights into how banks might securely and effectively implement these systems. Furthermore, the paper discusses key use cases that span from smart onboarding to real-time fraud detection, all interspersed with simulations, tables, and Python-based visualizations. The research explores the primary challenges related to IoT deployment in banking, such as data privacy, interoperability, and cybersecurity-related risks. Finally, the use of IoT for personalization is discussed along with strategies to ensure that it remains compliant and successful in earning customer trust. This paper is an addition to the scalable, secure, and actionable framework for banks looking to succeed in the data-first, customer-centric digital economy
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