IoT In Banking: Guide to Premise Security

The convergence of Industry 4.0 has altered our perception and approach in various dimensions, including security. IoT in banking, for instance, is driving the widespread adoption of electronic surveillance, ushering in a novel wave of banking security. While still in its nascent stages, internet of things in banking has already achieved an impressive market cap of USD 12.68 billion.  

But what exactly is IoT in banking? In the context of security, IoT in banking refers to implementing a network of interconnected devices, including sensors and access control systems, that detect unusual activities and trigger alerts to prevent potential security breaches. 

IoT is increasingly becoming an essential component of the security framework. By integrating IoT, financial institutions can deploy intelligent monitoring solutions that enhance security and enable rapid responses to vulnerabilities. 

Since implementing internet of things in banking can result from distinct security challenges that an institution has undergone, choosing a framework that evaluates the key points below is essential. 

Considerations Preceding IoT Implementation in Banks

Banks can adhere to a digital-first approach to address evolving threats, as a security breach can significantly tarnish their reputation, leading to a loss of consumer trust. Rethinking traditional security paradigms:  

1. Interoperability

Ensuring seamless communication during data exchange between various IoT equipment of legacy banking systems can be complex. Manual processes, outdated technology, and fragmented solutions can lead to delayed response times. 

2. Scalability

As the number of IoT devices in banks increases, banks must be able to scale and streamline operations in their infrastructure to accommodate the growing volume of data and processing needs, considering the included costs. 

3. Maintenance and Updates

An IoT framework requires regular updates and maintenance as traditional security and maintenance systems in banking can lead to vulnerabilities and suboptimal performance. 

Banks can leverage e-surveillance to tackle the challenges posed by legacy systems. For instance, interoperability issues—where data exchange between IoT devices and outdated systems is hindered—can be resolved by shifting to integrated, cloud-based platforms that facilitate seamless real-time communication among all devices.

Scalability improves as these platforms adapt to increasing data demands without straining infrastructure. Additionally, integrating AIoT enhances automation within banking systems, helping mitigate the high costs associated with manual processes.

Embracing these forward-looking technologies, banks can lay a foundation for a secure and seamless banking experience while remaining agile in the face of evolving security demands. 

Applications of IoT For Banking Security 

Banks can fortify their security posture by connecting digital IoT-enabled devices and systems by manifolds. Here is how:  

1. Real-Time Surveillance

ATMs and bank branches can employ IoT-equipped cameras, sensors, and analytics platforms, facilitating 24/7 monitoring and enabling rapid detection of irregularities and suspicious activities. These IoT networks allow remote management and automated alerts, enabling swift, data-driven interventions leveraging cloud-based systems. 

2. Fraud Detection and Prevention

Utilising web-enabled systems, banks can deploy IoT solutions integrated with machine learning algorithms that analyse transactional behaviour to detect unusual patterns, anomalies, and potential threats. 

The Role of IoT Sensors in Bank Surveillance 

The BFSI industry is positioned strategically with several digitalisation advantages, such as using IoT sensors in banks for real-time monitoring for operational effectiveness, automation, security advancements, and data analytics insights for well-informed decision-making. Below are enlisted checkpoints specifying applications of IoT in bank surveillance: 

• IoT sensors, such as Motion Sensors and Surveillance Cameras, continuously monitor ATMs, branches, and data centres, alerting banks to unusual activity.

• Temperature and Humidity Sensors autonomously manage lighting, heating, and cooling settings within bank premises, optimising energy consumption.

• Magnetic Sensors at currency chest doors and ATM shutters instantly notify the commanding systems of tampering or forced entry attempts, enhancing vault and cash protection.

• Vibration Sensors are vital for detecting unusual vibrations, such as those from drilling or tampering at ATMs. Acoustic sensors respond to sounds like glass breaking, providing early alerts during potential security breaches.

• Energy Monitoring Devices can autonomously control thermostat settings like lighting, heating, and cooling systems at bank premises, reducing energy consumption and environmental impact. 

As IoT continues to evolve, banks are poised to embrace its prospect of revolutionising the financial industry. With end-users at the heart of every bank, they can stay ahead of the curve by enhancing consumer outlook and solidifying their position in this digital age.

Why Choose IoT as A Catalyst for Bank Surveillance?

Given the significance of IoT in enhancing security, are you apprehensive about the next steps? If so, IGZY is here to provide you with the required expertise and support.

With our state-of-the-art Bank e-surveillance solutions across India, we are committed to safeguarding banks against various premise breaches. This commitment is exemplified in our e-surveillance implementation for a leading Indian private bank. Overseeing more than 600 branches from our command centre, the bank has established itself as a leader in navigating the evolving threat landscape, reporting null successful breaches to date, thanks to quick turnaround and alert verification time.

Positioned to accelerate financial institutions leveraging IoT and diverse tech-forward solutions, IGZY can strengthen poor ATM security and implement cloud storage to defend footage loss from NVR crashes, enabling affluent regulatory compliance. 

Contact us at [email protected] for further information and to schedule a complimentary security evaluation. We can help you identify gaps in your current security posture and explain how e-surveillance can potentially eliminate them.