Digital Transformation in Banking: The Role of IoT in Driving Efficiency and Innovation

The banking sector has experienced significant digital transformation in recent years, primarily due to the integration of Internet of Things (IoT) technologies. The Internet of Things enhances customer engagement, operational efficiency, and service innovation in banking by utilizing connected devices, real-time monitoring, and data-driven decision-making. This study examines the effects of IoT on enhancing efficiency and fostering innovation within the banking sector, emphasizing customer perceptions of IoT-enabled banking services and the strategies utilized by banks to harness these technologies for sustainable growth. Data were gathered from 230 respondents using a structured questionnaire that included various demographic backgrounds. The analysis indicates that the adoption of IoT in banking has markedly enhanced service personalization, improved security measures, optimized operational processes, and stimulated innovation in customer interaction. The findings demonstrated that younger, technology-oriented consumers exhibited greater receptivity to IoT-enabled solutions, whereas data privacy concerns persisted as a significant challenge. The research indicates that the adoption of IoT is transforming the banking ecosystem, necessitating that banks balance innovation with strong cybersecurity measures to fully leverage its advantages.