Wearable technology is an emerging field that holds promise for the banking industry. New products are expected to launch in the upcoming months including Apple’s iWatch.
“Wearables lend themselves well to quick banking updates, such as fraud alerts and balance checks, and simple transactions like funds transfers. They’re also expected to work well with voice-activated banking, in which customers verbally ask their bank for information or make a simple request, a la Apple’s Siri personal assistant. And the devices are gaining popularity — Generator Research projects 8.9 million smart watches will ship worldwide in 2014 and that the number will climb to 214 million in 2018,” according to the American Banker article.
Many industry specialists are encouraging early involvement from financial institutions. Toronto’s Tangerine Bank is anticipating the release of wearables before the end of the year. They believe this technology will cater to customers’ needs and will increase accessibility.
Security is an issue when new technology is created and wearables are no exception. Developers are working on these issues but know they will not be completely solved. Chris Dancy of ServiceSphere, a technology consulting company, has offered innovative ways to use wearables, including sending alerts to users. They can also be used to conduct market research on consumer behavior.
Wearable payments have emerged in the transportation industry as well. In Boston, two MIT students created a ring that will allow users to pay their fare.
For more on this, check out the Mercator Advisory Group’s research on wearable payments and wearable banking technologies. This topic will be also discussed in greater detail in an upcoming Mercator Advisory Group’s Transit Report.
Overview by Stephanie Bill, Associate Analyst, Banking Channels Advisory Services
To read the full story, go to American Banker.