M2M communication

M2M communication is extremely powerful and can dramatically improve the functions of commercial banking.

M2M communication represents the communication between two machines or devices through various channels such as physical networks, information-sharing networks, software communication, and application interfaces. The sole purpose of M2M communication is the exchange of information across two or more machines or between software running on those machines.

The concept of M2M communication assumes that no human intervention is required while exchanging information between machines. M2M communication can also take place over wireless networks. Wireless networks have made M2M communication easier and more accessible. The following list includes several common applications of M2M communication:

• Manufacturing
• Smart utility management
• Home appliances
• Healthcare device management

However, M2M communication is different from IoT. IoT uses sensors to trigger inputs, whereas M2M communication specifically refers to the interaction between two systems.

Commercial banking is a group of financial services that includes deposits, checking account services, loan services, drafts, certificates of deposits, and savings accounts for individuals and businesses. Commercial banks are the usual destination for peoples' banking needs. But how do banks function and make money? This is a very common question that we will answer right now. Commercial banks make money when they earn interest from various types of loans that they provide to their customers. The types of loans can vary, for example, automobile loans, business loans, personal loans, and mortgage loans. Usually, a commercial bank has a specialty in one or more types of loans.

Commercial banks get their capital from various types of account services that they provide to their customers. The types of accounts include checking accounts, savings accounts, corporate accounts, money market accounts, and more. Banks utilize this capital to invest in high-return investment options such as mutual funds, stocks, and bonds. Banks have to pay interest to those customers who have their accounts with the bank. The rate of interest is far less when compared to loans, however.

The role of M2M communication in commercial banking

Consider an example that involves transferring money from one customer's account to another customer's account. In the past, this was a manual task that required filling in an appropriate form, submitting the form to the appropriate department where ledger entries were created, and then the amount was debited from one account and credited to the beneficiary's account.

Nowadays, this process has changed entirely. With a mobile phone, the customer can transfer funds from one account to another without any hassle. The beneficiary's account will be credited with the money within a few minutes. Incredible, isn't it? So, how did this happen? Well, M2M communication and process automation have played a major role in making this happen. It has become possible for machines (that is, computer systems, cloud-based virtual machines, and mobile devices) to connect over a wireless or wired network and transfer every piece of necessary information to another machine or software running on that machine. Nowadays, you only have to visit the bank for a few specific reasons. Customers can now even open a savings bank account or a loan account straight from their mobile devices.