Mar 25, 2020Employees in the financial planning and analysis sectors know how much time they spend on research, comparing and making sense of numbers. For a financial institution to benefit, it is necessary for people working on this matter to be absolutely precise. There's no room for the tiniest error, because that can mean huge losses—damage to either clients or a company, and it would be disastrous in both cases.
IoT technology comes to the rescue when deadlines are impossible to meet. In fact, banks and other financial institutions are implementing such technology because it provides huge benefits for their firms. Below, you can read more about what the IoT is and how it helps with analysis and planning.
What Is the IoT?
The phrase "IoT" stands for "Internet of Things." It's a rather unfortunate term that doesn't explain anything on first glance. However, what it means is that this technology combines other technologies into one, in order to create a system that will do a specific task as best as possible.
The IoT includes machine learning, automation, analysis, embedded systems, wireless technologies and more. Altogether, these features make a single machine that carries out operations faster, more precisely and more logically.
How Is the IoT Helpful for Financial Analysis?
Financial analysis goes a long way. There are more paths an employee can walk until he or she gets the results needed. Such analysis can be fundamental or technical, but in the end, the important outcome is to create an understanding of the value, risk and performance of a particular issue.
The IoT can take over an employee's position to perform thorough research on a certain subject. For example, if an analysis of a person asking for a loan is required, the overview will show whether or not the client is eligible. The typical employee will need a day or two to do this, but for technology implemented in an office computer, it would only take seconds.
On top of this, the software can make further assumptions regarding money flow, spending, exposure and risk factors. The company will have this data ready within minutes and will be able to finish the process immediately. Managers will have the information in front of them and will easily be able to decide whether or not someone can do business with them.
How Can Employees in the Planning Sector Benefit?
A financial planner is in charge of reviewing the information he or she has about a client and giving advice, or that individual can do the same for internal needs inside the company. Whichever is needed, it requires being fully dedicated to all the possible information there is, as well as drawing a conclusion from it.
As with analysis, the IoT can largely speed up the process of planning. It takes time to make sense of all the data a planner has in front of him or her. The human brain is more powerful than computers, but when it comes to tasks like these, computers work thousands of times faster.
Artificial intelligence (AI) is lately becoming a standard part of IoT processes. It helps in generating more data and more precise information, and in making a clearer image of clients. It takes just a short amount of time for computers to do research and present the results to a financial planner. Then, this person can see what's important for the particular case and come up with the best possible solution.
Before the IoT, financial planners were doing everything by hand. The calculations they made were not always made with maximum precision. That's why clients were often dissatisfied, and why companies were losing money over this—not to mention that analysis and planning for internet needs can lead to actions that can cause vast damages to a company's budget. Now, with the help of technology, the mistake risk factor is almost zero, since computers do not make mistakes.
"IoT" is a term that can be used for transmitting data from devices attached to not just computers, but also people and animals. However, in the financial world, there's no need for something like this. The only device that is being used for these needs is the client's smartphone, which can be connected to the system used by the IoT environment.
Still, this doesn't mean that there's no need for this technology. IoT statistics show that 127 new devices employ IoT technologies connected to the internet every single second. That's a lot of information getting together in one place. Sure, not all of it can be used in finance, but the fact is nonetheless staggering.
It shows why implementing new technologies is essential. The world is moving forward, and everyone needs to get on that train. Sooner or later, we will all be affected by it. The rise of AI and IoT methods is already all around us, and it's just a matter of time before we will be completely overtaken—in a positive manner, of course. Technology is helping us build a better society and live a better life. This is just a part of that goal.
Aleksandra Arsic is a contributing writer at Kommandotech.com. Her economics degree helps her understand tech's implications for disruptions in existing infrastructures and the global economy. She can be found writing, designing and developing articles in diverse fields and reading up on technology trends. In her free time, Aleksandra loves to travel, sing, play guitar and watch movies.