Financial Services Sector : Internet of Things Framework


The Internet of Things (IoT) is a trending communication paradigm that embeds some intelligence in the objects of everyday life that are interconnected to communicate, transfer messages, take decisions, make predictive actions and provide appropriate services which can be leveraged in financial Sector as well. IoT is applied for several applications including healthcare, smart cities, agriculture, earthquake early detection, smart homes, traffic congestion, waste management, smart grid, smart environment, intelligent shopping and also financial sector.

The development of branch-less banking services via multiple communication channels has made it possible to create  a  new  kind  of  added  value  for  customers,  in  the  banking and financial service sector. With the growing use of mobile phones, especially other wireless devices such as wearable and sensors, has made the IoT as a tool to improve customer experience, a logical development in electronic banking.

Proposed Framework

Although today, in banking and financial service sector, online and mobile banking systems deliver reasonably high quality services to consumers, the quality of services could be made better by using Internet of Things technologies. To the best of our knowledge, there is no framework using IoT and analytics for banks and financial organizations today.

With our proposed framework customers can be provided targeted offers based on a statistical study of income, accounts and balances. With connected things it is possible to act on point or individual events and provide response to customers based on inbound requests. We can create targeted offers based on anticipated life and financial events predicted from spending activity and dynamically change the way a customer to be treated based on spending behavior and financial impact. This framework explores what information can be tracked by the banks that was not available in the past, what are the critical things to be tracked to keep the customer satisfied and what actions can be performed using this data.


Various layers of the proposed framework are Device Management Layer , Communication Layer , Integration Layer, Event Processing and Analytics Layer , and Application Layer.

Functioning and requirements of these layers fro IOT enabled environment are described in our paper [2].

Applications of the Model- IoT for investment management, IoT for Loan Processing, and IoT for risk-aware shopping with customer specific offers.

Flow of the applications with the IOT enabled framework.flow_iot


  • Providing targeted offers based on a statistical study of income, accounts and balances.
  • More tailored marketing and campaigns.
  • Identifying problems before customers get aware of them.
  • Act on point or individual events and provide response to customers based on inbound requests.


  • Support of legacy IT infrastructure.
  • Technological issues- identity management, energy efficient sensing, greening IOT, scalability, security and privacy.
  • Integration of smart components and global cooperation.
  • Scientific challenges – interoperability, effectively handling uncertain information and service adaptation in the dynamic system environment.


Here, we proposed a conceptual framework based on IoT for banking and financial services sector. We proposed the framework with heterogeneous objects interacting with the physical environment. The distinctive features of this framework are high reliability, multicast, dynamically expandable using a modular approach, efficient quality of service management with integrated analytics platforms in-place.

The technology of Internet of Things is opening several possibilities for the future of banking and financial services. A major challenge in implementing IoT technology in banks is that support of legacy IT infrastructure. So, it needs to be remodeled to simplify the complex systems and to support new technologies effectively.

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