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exchange the data through sensors thereby avoiding third-party authentication which

achieves cost efficiency, reduces risk, increases processing speed, and ensures trust

by creating a valuable business model [13]. This chapter aims to provide the readers

with detailed information on blockchain technology enabled IoT for the banking sec-

tor. It describes the various applications of IoT as connected solutions in the banking

space and discusses the status of blockchain implementation by commercial banks

in India. Finally the strength, weakness, opportunities, and challenges (SWOC) of

implementing Blockchain in banking is discussed.

2

Application of IoT in Financial Services Sector

IoT is a novel and growing technology that creates a network of a variety of things

or devices such as mobile phones, sensor embedded smart devices, and Radio-

Frequency Identification (RFID) tags. IoT is designed in a variety of applications

where people, devices, and firms are involved to provide connected solutions such

as connected health, connected home, connected vehicle, and connected banking.

Figure2 shows the applications of IoT in the financial sector.

The combination of the IoT and financial services is a fast developing trend. In

the financial sector, the IoT technologies are used to monitor assets, understand cus-

tomer behavior, promote payments through wearable devices, fraud alert, improve

investment and visibility of the capital market, and enhance the customer experi-

ence. The Global IoT Market is predicted to grow from $150 billion in 2018 to $1.5

Trillion by 2025 [14]. The IoT establishes the digital connectivity between customer

and the bank/ financial institution for anything, anytime and anywhere. In the finan-

cial sector, the IoT technologies are used to personalize customer service, improve

decision-making, gather data in real time, and enable smart interaction with cus-

tomers. The involvement of IoT in different financial services is discussed in the

following subsections.

2.1

Banking Sector

IoT is not only a concept, it is a real time, technology enabled network of devices and

customers. In recent decades, there has been a greater evolution in electronic devices

and software industries which leads to increasing the usage of IoT devices from

millions to billions. Exclusive IoT softwares developed for the banking sector has

resulted in drastic changes by way of new facilities such as retail banking, connected

banking, personal Banking, digitized banking, secure banking, and mobile banking

as depicted in Fig.3.