With the rapid advancement of the Internet of Things (IoT) and smart connectivity, the financial sector is on the verge of adopting a new paradigm: the Banking of Things (BoT), a concept that promises to transform how financial transactions are carried out in everyday life.
This emerging trend—already confirmed as a discussion topic at Febraban Tech 2025 within the track “IoT, connectivity and speed in the transformation of financial services”—will make the banking experience even more seamlessly integrated into customers’ routines, enabling operations that are both fluid and highly personalized. However, this evolution will also present operational, security, and regulatory challenges to ensure that financial services in an increasingly intelligent ecosystem are delivered with both ethics and reliability.
Below, we explore what the Banking of Things is, its benefits and challenges, and the impact it will have on the future of financial services.
Banking of Things: Understanding the Concept
The Banking of Things (BoT) redefines the role of financial institutions and the customer experience by integrating IoT with financial services, turning connected devices into active participants in financial operations.
In practice, this means that devices such as smartphones and wearables will be able to autonomously and securely perform activities like automated payments, real-time notifications, balance inquiries, and bill payments. This is made possible by a technology architecture that combines IoT sensors, artificial intelligence, big data analytics, blockchain, geolocation, and other intelligent solutions.
The result is a constant, connected flow of information that drives agility, optimizes operational efficiency, and delivers a more convenient, personalized financial experience.
Benefits of the Banking of Things
The BoT model offers significant advantages for the financial sector, particularly in banking and payments:
- Process optimization through intelligent automation that enables users to complete payments and transfers proactively and efficiently, saving time on routine banking operations.
- Personalized experiences driven by data analytics, enabling banks to identify customer behaviors and preferences and tailor services accordingly.
- Enhanced connectivity through technologies like 5G and IoT, allowing customers to access financial services anytime and anywhere.
- Operational efficiency by reducing bureaucracy, queues, and manual processes—benefiting both institutions and customers.
Furthermore, BoT can integrate with other technologies such as artificial intelligence, big data, and cloud computing, further driving innovation in the industry. o Banco das Coisas, o setor financeiro, em especial o de banking e de pagamentos irão se beneficiar de várias maneiras, já que por meio desse modelo é possível:
Impact on Banks and Customers
The Banking of Things marks a significant evolution in the relationship between financial institutions and their customers. It enables the creation of personalized and hyper-segmented services, improves operational efficiency, and opens new revenue streams while strengthening customer loyalty.
For customers, this trend promises greater convenience and efficiency in their banking journey—automated payments, frictionless services, and more control over personal finances through real-time alerts and tailored recommendations from connected devices.
Challenges to Address
While the BoT presents a wealth of opportunities, it also comes with challenges that must be addressed to ensure secure and effective integration with IoT ecosystems:
Regulation and compliance: Clear regulatory frameworks must be established to address the complexities of BoT, including data protection, privacy, and financial compliance.
Data security and privacy: More connected devices mean more personal and financial information in circulation, increasing vulnerability to cyberattacks. Protecting user data and privacy will be critical to the success of BoT adoption.
Robust technology infrastructure: Seamless interoperability between IoT devices and platforms will require advanced connectivity networks such as 5G, which are still maturing in many markets.
A Strategic Opportunity for the Financial Sector
The Banking of Things is more than just a technological trend—it’s a strategic shift toward a more agile, efficient, and customer-centric financial ecosystem. By adopting BoT, institutions can streamline processes, deliver high-value services, enhance the customer experience, and strengthen their position in an increasingly connected market.
