The Internet of Things or IoT involves three components: devices, computing, and communications. IoT is heterogeneous in that these three components work together for intelligent decision-making. IoT strives for interoperability. Devices include objects that can connect to the Internet; communication happens through Wi-Fi or satellites; computation happens in a central location on the server.
What is IoT Testing?
Since the IoT network communicates in real-time, security and performance issues can negatively impact the rest of the network. It is essential to detect any problem areas before you release the product to the users.
IoT testing helps ensure problem detection early on by validating the product’s performance, security, and functionality. However, IoT is a fragmented system which can cause difficulties during testing. You can meet these difficulties by having teams test banking applications and different components or an automation tool to help you do the same.
How IoT Testing Will Open New Avenues For Banking
- IoT Implementation
IoT testing will help perfect IoT implementation. For banking and finance, this is a significant benefit. IoT can help these industries make their services available to their users on multiple devices. Users can access their bank accounts from any device that has a digital interface and connects to the Internet.
IoT will also enable users to perform tasks that are now paper-based or in-person digitally. This change will help banks improve process speeds and keep users happy.
- New Leasing Models
IoT testing can help track the wear and tear of assets, asset usage, and idle time. These metrics provide vital data points on leased assets. Tracking these metrics for banks and financial service providers can help them develop new leasing models – turning traditional products into services.
- Seamless Customer Onboarding
Banks can derive information that would help their credit assessment processes by knowing their customers’ financial behavior. Their digital footprint, which IoT can track, offers a comprehensive view of the customer’s financial behavior and could provide insights into other
usage patterns of various devices. Looking at people’s Facebook / Gmail IDs or email addresses to log in to most services may soon be extended to have a unique biometric signature used for most transactions. This universal digital identity allows banks to create personalized experiences with the data they capture.
- Automated Payment
Automated payments will transform the payment systems of finance companies, retailers, and technology manufacturers. The opportunity is immense: when machines can perform transactions with machines in real-time on a marginal cost basis, the traditional concept of payments will become obsolete. Test automation platforms can empower machines can perform transactions through the Internet of Things (IoT) and, in some cases, at negligible costs. By integrating payments into the larger economy, automated payments can create value for everyone by saving time, enhancing convenience and efficiency for users, reducing operational costs for businesses, and improving security for their data infrastructure.
- Risk Mitigation
Today, tracking high-value goods delivery is already a reality in the trade finance space. However, with the advent of IoT, the tracking mechanism can be extended to include tracking asset properties such as temperature and other parameters associated with the specific shipment involved. For example, if a shipment has temperature-sensitive goods such as pharmaceuticals or medicinal molecules, creating an alert system to trigger when one or more parameters reach an extreme value could result in risk mitigation. IoT testing can help these systems run well and help banks make informed decisions for trade finance scenarios.
Insurance Devices that plug into the onboard diagnostic port of cars and transmit information about driving behavior are now available from businesses. However, cutting-edge solutions from companies like Tesla Motors promise to advance digitization in the automotive sector to a new level. Even the Linux-based operating system in Tesla Cars allows for “over the air” feature updates. Digitization will allow insurance companies to provide tailored insurance to clients based on their driving styles, engine health, and general vehicle wear and tear.
Benefits of IoT
- By integrating connected gadgets, people can use the system to build good financial habits.
- Through IoT, banks can connect their services to user wearables. These wearables can alert users of pending payments or deadlines.
- IoT makes business process automation, customer management, new avenues of payment, and much more possible.
- IoT systems can help banks automatically disable user cards in case of cancellation or late payments, transfer asset ownership, handle requests, and more.
- Banks can use IoT to process loans instantly and monitor collaterals; this will help deliver seamless user experiences.
IoT implementation is picking pace with the advent of 5G and technological advancements. According to Statista, by 2023, the IoT market value is set to rise to more than a trillion dollars.
For the banking and financial service providers, this means translating data from IoT into useful information to help them make educated decisions.