How IOT is Influencing Microfinance Sector

Internet of Things is IOT. It is the network of interrelated computing devices. It might be mechanical, it might be digital machines objects with embraced with electronic software, sensors and connectivity which enable these objects to connect to transfer data over a network. This is IOT. IOT refers the way device this connected with one another with a network environment. These devices can operate any number of functions from sensors in factory to machines, printer, television even refrigerators too. The top five industries benefiting from this IOT, those are health, hospitality, agriculture, manufacturing, and finance because IOT helps to minimise cost maintain data bases, reduced wealth in healthcare industry. IOT helps in manufacturing industry to keep track of all the processes, resources and controlling costs too. IOT provides a real time data that banks can use to update customers about offers, theirs needs and decision making. Banks and financial institutions take help of an IOT development company to minimize risks, block hacked accounts and analyse any suspicious user data. Retail banking has been using an early prototype of IOT device decades the automated teller machine which is known as ATM have been one of the top IOT devices that makes banks far more efficient by allowing real time transaction.


IOT enables the micro financial organization to deliver better services to their customers as analysing their critical data helps them to understand their needs and suggests personal life products as per their preferences. Banks and micro financial institutions can used data gathered by IOT devices to offer usage based differentiated offerings. For instance, usage-based insurance or pay as you drive insurance options determined premium based on the driving behaviour of the customer or the distance travelled. The calculation is done by data gathered by telematic devices. The IOT powered monitoring solutions provide accurate information or conditions on performance and equipment’s such as ATM, drive-up systems and so on. Another example is night depositories analyse the information gives the better understanding of the efficiency levels of the equipment and helps reviews the error solution time. The error solution time is a major factor in microfinance system. So, reduce that we can use IOT in a vast way. And IOT also provides real time data that backs can use to update customers about offers and the best needs and speed up their decision making which are very important for microfinance sector. Banks and micro financial institutions take helps of an IOT development company minimize risks, blocked hacked accounts, analyse suspicious user data too. Banking transactions also become sheds more convenient with superlative contactless premium services with this help of IOT. This is how IOT is influencing microfinance sector.

Preeti Roy is the Youth Coordinator and Lead Content Developer at Markzin.

For further communication please write to Preeti at communications@markzin.com

.