“The Internet of Things provides boundless opportunities for the BFSI industry” – By, Mr. Ranjeet Koul, VP and Country Manager APAC and MEA, Aeris Communications

  1. Aeris Communications VP and Country Manager APAC and MEA Ranjeet KoulHow IoT helps as a driving force in the BFSI Sector?

Besides transforming workplace and home, IoT is changing the way BFSI sector functions today. According to the industry reports, the Internet of Things in the BFSI market stood at USD 17.85 billion in 2018 and is expected to reach USD 116.27 billion by 2026. Within the BFSI sector, IoT is expected to have a vast impact on all aspects, right from banking and insurance to financial planning. The APAC region is one of the early adopters of Internet of Things technology in BFSI sector. India, Japan, and China are expected to hold some of the largest market shares in the Asia Pacific IoT in BFSI Market during the forecast period.

The major driving forces of IoT in the BFSI sector includes the convergence of operational and information technology and the increased use of IoT devices in products, applications, and connected banking. IoT enables financial institutions to track customer’s activities, life events, and needs with the help of the data generated by sensors. This technology would notably help bankers while designing their financial services such as ATM installation, credit/debit services, fixed deposit and loan processing.  The customers’ IoT data will give the banks insights about the usage of ATMs in various regions to increase or decrease the installations accordingly. Hence, apart from creating personalized financial services, the banks can strengthen their customer loyalty by putting up the ATMs or cash dispensers in the deprived areas. IoT is also enabling financial organizations to deliver usage-based differentiated offerings, such as Usage-Based Insurance (UBI), and influence the economic decision-making of individuals.

  1. How is IoT helping players of BFSI sector optimize their operations? 

The Internet of Things provides boundless opportunities for the BFSI industry. With IoT, the M2M connectivity of objects, anytime, anywhere; allows the real-time collection and sharing of data seamless. The data helps with deeper insights on customers for better understanding of changing patterns of consumption and psychographics, especially after crisis created by the pandemic which has drastically changed consumer behaviour. Some of the critical features driving IoT adoption are quick and frictionless onboarding, contextual services, multichannel payments, smart asset tracking, and backend optimisation. The IoT technology empowers Banks, NBFCs, and MFIs to deliver customers a far more personalised experience. IoT empowered banks are achieving better commercial results with the access to data from across the business customers’ value chain, as well as from suppliers to distributors and retailers. The IoT structure that simplifies data transmission across consumers and financial institutions is now being called the ‘Bank of Things’. Based on the study by Absolute Market Insights, Internet of Things-based banking and financial services will grow at a CAGR of 55.3% between 2019 and 2027. While still, it’s the beginning, the growing adoption of smart devices in BFSI  vertical expected to trigger exponential growth in the decade ahead.

  1. Aeris’ role in adding to IoT capabilities with their Asset Assurance Platform.

Aeris has been concentrating on the Asian BFSI sector since its inception in India. Working with several clients in multiple regions as technology partners, we identified the problem of substantial credit defaults on heavy and light commercial vehicles as a significant concern. Aeris Asset Assurance Platform is designed to help clients in proactive credit default detection, reducing repossession costs related losses, improving business profitability, and enhancing service experiences. Aeris Asset Assurance Platform is servicing leading OEMS, auto financing, leasing, and insurance companies in India, Africa & the APAC region. The platform delivers benefits of insufficient asset protection and recovery to more than a dozen of our clients, proving our capability to provide comprehensive and distinct IoT solutions for the BFSI sector.

  1. What benefits can IoT solutions offer in the B2B & B2C segment? 

While it is true that the B2C segment is always in the limelight when it comes to IoT, thanks to ‘amazon Echo’ and ‘Nest’ – two of the more popular “smart home” devices and the Fitbit, our very own wearable health and fitness gadget. However, the B2B segment stands to gain more with complete innovation in the business models from ‘product’ to ‘service’ orientation. Industrial equipment, heavy machinery and high valued physical assets can now be offered as-a-service with recurring revenue than just one-time sale for the manufacturers. Not only does it befits manufacturers with high profits, the customers stand to gain too, as IoT enables ‘pay-as-you-go’ model with data on exact usage

In B2B, for Banking and Financial Services, adoption of technology innovations with IoT, AI, Big Data and Analytics is already helping bring more predictability, especially in commercial lending to optimise processes such as KYC and improve risk profiling, underwriting and real-time risk monitoring. Predictive analytics for invoice delinquency, delivery reconciliation automation, advanced data visualisation is helping BFSI streamline F&A operations quicker and with more accuracy. Aeris Asset Assurance Platform helps BFSI clients with proactive credit default detection, reducing repossession costs related losses, improving business profitability and enhancing service experience with 24×7, multilingual service support. Some of the key benefits delivered include,

  • Mechanism for proactive credit default detection
  • Improvement in business profitability by reducing repossession & redeployment cost related losses
  • Improvement in customer management and discoverable profile for the portfolio
  • Prevention from asset misuse
  1. How is connectivity technology changing the face of BFSI sector?

5G and IoT are promising technologies that will provide multiple benefits, including a new generation of smart and connected products. Connected everything from IoT, and, high-speed data transfers from 5G technology enables financial enterprises to have deeper insights with data and the power manage everything from marketing intelligence with advanced analytics to improved operations, enhanced customer experience, and business excellence.

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