Banking on the Internet of Things: More than Restocking Fridges

By Bryan Yurcan

Alexander Makeyenkov, SVP at Finance Practice at DataArt, speaks with American Banker about the use of IoT data in the banking industry to provide more convenient, relevant and targeted customer services and experiences, as well as the need to manage privacy.

“‘It also opens up the possibility for offering new products using this new access to data’, said Alexander Makeyenkov, senior vice president of the finance practice at DataArt, a consulting firm.

For example, Makeyenkov said his firm is advising a European bank, which he would not name, that is piloting a ‘healthy savings account.’ Customers who opt in for this account would allow the bank to track their fitness levels via a wearable device, such as how often they go jogging or go to the gym. They could then get higher rates on their savings depending on how many calories they burn per week or month. Also, the bank is exploring partnering with sporting goods retailers, who would provide offers to these customers on running shoes or other sporting equipment.

‘For the clients it's motivational, and they get a bit of a financial benefit,’ Makeyenkov said. ‘For the bank it's a bit promotional for them, and it allows them to establish a footprint on [the customer's] smartwatch.’

But, he added, uses like this must always be something customers opt in for, and in general banks need to be careful to walk the fine line between being helpful and being too involved in a customer's life.”

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