Connecting AI and IoT for financial services provide enhanced interoperability between all financial operations and provide a better sharing of data and information.
According to Mckinsey, with blockchain based platforms and IoT, the financial sector is estimated to make an economic revenue generation of USD 11.1 trillion by 2025.
The current business performance is also an important factor used to predict the future outcomes of a financial operations or transaction. Not every outcome is easy to predict though. This is not a fortune teller. Machine learning uses mathematical models, statistical models that gather current data and plots a pattern between the inter-related data. From the inter-related data, the models built provide potential outcomes for the specific operation for which the prediction model was built.
This outcome is used to make better, more efficient and smarter decisions in terms of saving money, making smarter investments, identifying investment mistakes, accomplishing a balanced demand and supply.
For example, say two individuals are trading inside information via SMS. This critical information is fed into the supercomputer in such a way that the super computer constantly keeps searching all phone communications and text messages with the location boundaries set within the AI system. Further, when the supercomputer comes across any conversation or SMS that contains tags similar to the critical information or red alert data fed in the super computer, a red alert message or notification is sent to the concerned person.
Then, the concerned personnel can take appropriate necessary action even before the malpractice could occur. This puts a full stop to many financial mal-practices.
Yes, with IoT, it is possible to interconnect devices across departments to efficiently share data and information. Also, with the help of internet of things, financial institutions can verify data in real-time. One can track transactions of payments made and payments to be received in real-time.
For example, now put all the above-mentioned features of internet of things in online banking. It would allow the user as well as the financial institution to track payments in real-time. This ensures that the end user receives the payment on time and the person who sent it does not become a victim of financial theft too. With the internet of things, security and privacy is enhanced for all operations and transactions. In addition, one can monitor data anytime, anywhere.
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