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Wearables - To Wear or not to Wear!
Sridhar R Practice Manager, Capital Market Services, Financial Services | March 20, 2020
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Wearable devices are essentially the technology that refers to any kind of electronic device(s) designed to be worn on the user’s body. These devices are also referred to as wearable gadgets or wearables in short. These devices can take many forms, including jewelry, accessories, medical devices, and clothing, such as socks and shoes, among others.

Wearable device technology is growing rapidly and has surpassed market expectations. This new technology is seeing strong consumer demand with higher and quicker adoption rates compared to mobile and smartphone devices witnessed earlier.

“The research firm Gartner has released its latest forecast for consumer wearable technology spending, and the estimates suggest that people are about to dramatically increase their spending on those gadgets. Gartner predicts that next year, consumers worldwide will spend $51.5 billion on wearable tech, including smartwatches, ear-worn devices, and headsets­– a 27% jump from 2019's forecast spending.

The research firm noted that much of that spending growth is coming from people buying their first wearable devices, and that tech improvements– particularly in the area of smaller, smarter sensors– will lead to popular new devices.”

Wearable device

Riding on wearable technology, many Financial institutions and Fintech firms have started building solutions that appeal to tech savvy clients underscoring customer experience and customized service to stay ahead of the curve in the market. As with any new technology outreach, wearables based solutions needs to ensure privacy and data security concerns of end users are taken care of properly, helping in smoother adoption and service transformation.

IoT Connected

The wearables device technology is growing rapidly and has surpassed market expectations. This new technology is seeing strong consumer demand with higher and quicker adoption rates compared to mobile and smartphone devices witnessed earlier. @hclfs

The Key Drivers of Successful Wearable Apps

The key aspects to consider for a successful wearable solution are:

  1. Customer experience. This would be the most important aspect that will determine the successful adoption of wearables. The wearable apps should be simple, intuitive, reliable, and transparent.
  2. Ease of integration. Wearable apps should be able to be easily integrated and become part of a seamless ecosystem of services.
  3. Unique offerings. Apps on wearables should consider relevant and device-specific services and solutions and not merely mimic the smartphone applications that may already exist in the ecosystem.
  4. Data and security concerns. They have always been one of the key concerns for adoption of smartphone apps and online apps. Wearables will be no different and so it will be imperative to address them early in the life cycle for successful adoption.

Use Cases in Capital Markets

Wearable technology can offer some use cases in capital markets:

  1. Ease of getting client confirmation for market transactions using wearables with embedded sensors and security features can provide seamless authentication and security
  2. Integrating customer relationship management tools with wearable devices will enable advisors/relationship managers to acknowledge client service requests/cases on time and serve them within minutes to increase satisfaction.
  3. Fidelity Labs has launched the Fidelity Market Monitor, which delivers daily market quotes to Google Glass.

Conclusion:

To wear or not wear wearable devices depends on a comprehensive digital strategy that underpins aspects of data privacy, securities and customer experience features alleviating the typical concerns of a client. With a clear and strong understanding of where wearable technology is moving along with a clear strategy to engage clients and developing the right wearable solutions, this approach should help financial institutions provide real value to their clients.

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