INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue X October 2025
Page 987
www.rsisinternational.org
Design an IoT Integrated Asset Tracking Application to Secure,
Enable Real Time Control and Improve Digital Customer Experience
in Glided Financing
Ashiq M I
1
, Archana Lidoo
2
, Chitra Paramasivam
3
1
Functional Architect, Cognizant Technology Solutions, India
2
Technology Architect, Cognizant Technology Solutions, India
3
Senior Manager, Cognizant Technology Solutions, India
2026
ABSTRACT
Gold being one of the precious metals is considered as a highly liquid asset and ensures providing better
economic advantage compared to other assets. Most of the banks provide loans in pledge of the customers gold
as a collateral. The gold that is stored in banks is sometimes subjected to manipulation by employees or
customers but unless verified this issue is discovered at a later point subjecting the individuals to legal actions.
The renewal of the existing gold loan process requires the presence of the customer in bank to fill and sign the
documents. The preference is provided on a first come first serve basis and the customer needs to wait until the
banking procedures are completed. This similar process is done even for retrieving gold from the bank. The
objective is to design an application integrated with IoT to ensure a transparency of the asset details and
improve customer experience by adopting digital methods during new asset pledge, renewal, and return.
Keywords: IoT - Internet of Things, RBIA - Risk-based internal audit, RFID - Radio-Frequency
Identification, AI - Artificial Intelligence, SAP - Systems, Applications, and Products in Data Processing, GPS
- Global Positioning System, LoRaWAN - Long Range Wide Area Network, Wi-Fi - Wireless Fidelity, BLE -
Bluetooth Low Energy, AES - Advanced Encryption Standard
INTRODUCTION
Gold has been prized for centuries as a store of value, a form of currency and a symbol of wealth. It can
help diversify your portfolio by providing steady returns and stable value despite market fluctuations. In
fact, many investors turn to gold to protect their wealth during economic uncertainty. But there's another good
reason to invest in gold that many overlook: its liquidity. Gold is one of the most liquid investments available,
meaning you can quickly and easily convert it to cash when you need it. Liquidity refers to how easily and
quickly you can sell an asset for cash at its current market value. For example, money in a bank account is
highly liquid because you can withdraw it anytime. Real estate is illiquid because it can take a long time to list,
accept an offer and close the deal. Gold has been universally accepted as a form of currency for thousands of
years. It's also an investable asset and is used in products from jewelry to electronics. It's valuable in every
country, making it easy to buy and sell globally. Because of this, while the price of gold may fluctuate in the
short term, there are always buyers in the market for it. Therefore, if you want to convert your gold to cash,
you shouldn't have any trouble doing so. Gold is an asset you can hold in your hand. This gives investors a
sense of security compared to cash assets (which can quickly become devalued) and stocks (which exist
abstractly as shares or symbols on a screen).Whether you hold physical gold like coins and bars or stocks
backed by the precious metal, this tangibility makes gold reliably valuable and, therefore, a stabilizing
element in any portfolio. There is only a finite amount of gold in the world, and once we've mined it all, we
can't mine anymore. This relative scarcity keeps gold prices steady compared to assets like cash, which
governments can print more of at any time and is highly dependent on market forces. It also means gold is
always in demand, which makes it easy to sell when you want to cash out your investment.[1] In the dynamic
and ever-changing world of financial services, glided financing shines as a beacon of opportunity for
individuals seeking to unlock the value of their gold assets. This unique avenue empowers individuals to
harness the intrinsic worth of their gold possessions to access vital funds through collateralization. This form
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue X October 2025
Page 988
www.rsisinternational.org
of financing has gained traction due to its simplicity and accessibility. Lenders accept a variety of gold items,
including jewelry, as collateral for these loans. When individuals opt for glided financing, they offer their gold
assets as security to the lender. The value of the loan is determined based on the purity and weight of the gold
pledged. The gold is securely stored in RBI-approved lockers to ensure its safety throughout the loan tenure.
[2] Recently large numbers of frauds across the banking industry have been reported due to non-observance of
the laid down procedure while processing gold loan. Many times, frauds happen because the branches are
dependent on the assayer for the complete process of the gold loans. This case study is developed to
understand the importance of various guidelines with respect to empanelment of assayer, safety and
operational guideline on sanctioning of gold loan. This will help the branches to follow the preventive
vigilance guidelines issued by the bank from time to time while processing gold loan to avoid occurrence of
frauds and to improve the health of the Bank's credit portfolio. In the reappraisal report it was mentioned that
one packet was found to be of lesser weight due to the missing of one item of gold ornaments vis-à-vis the
appraisal memo. While checking a few more packets were also found loss of weight due to the difference in
the number of articles. Based on the suspicion Branch got re-assayed entire portfolio. It was found that 68 gold
articles totaling 1750 grams in 53 packets are found missing. It was a huge shock for everyone in the branch.
Regional Office reported the matter to Head Office and investigation process started. On further investigation
it was found that at the end of the day, all those jewels that were pledged, which are in the custody of the
Assayer are rechecked by the officers. After the rechecking, the officer handover the jewels to the assayer for
sealing with wax by the assayer and the sealed packets will be handed over to the branch officer to be kept in
the safe custody. During the process of fixing the wax, the assayer use to remove 1 or 2 jewel articles from the
packets. The absence of officers during the sealing of packets, have given the assayer an opportunity to remove
the jewel from the packet. The assayer use to keep the note of jewels which he has taken off from the packets
along with the customer details in his dairy. And also he use to prepare 2 vouchers of Jewel items and hand
over one copy to customer and keep a copy with him for future reference. The assayer use to pledge some of
the stolen jewel articles with the same branch and reported that around 20 loan accounts amounting to Rs.
50.00 Lacs have been opened, based on the security of missing jewels. The borrowers in these loans were
introduced by the assayer. Whenever customers used to come for release of jewels, he would manage the
customer without the knowledge of the branch officials and amicably settle the issues without the intervention
or the knowledge of the branch officials. The assayer also uses to take personnel interest on reverification
process and kept a keen watch on the reappraisal and re-verification process by the bank. After reverification
process is over the branch officials has handed over the unsealed packets to him for packing and waxing of
jewel packets. Utilizing the opportunity, the assayer utilizes the time of absence of officers during the sealing
of packets, after the process of re appraisal, removes the articles from the packets. This was done with the
knowledge that the interval for next reappraisal is 3 months, and the same packets are not taken at a large. The
branch was having only one assayer as per preventive vigilance guidelines branch has failed to engage
minimum two assayer whom to be changed on rotational basis. The branch was fully dependent on the assayer
for the complete process of the gold loans. The branch officials have failed to control on movement of jewelry.
Weighing and verification of gold ornaments must be done by assayer at the branch premises in the presence
of Branch Manager / Officer. The branch officials have failed to verify the weight of jewels and number of
items in the packet after waxing of jewel packets by assayer and taken possession of jewels from assayer
without verification. Jewel loans were sanctioned to the borrowers introduced by assayer without following
proper guidelines. Additional discreet enquiry desired in new cases of jewel loan sanction to ensure ownership
of the ornaments offering for pledge to avail loan facility was not carried out. The branch officials were absent
during the sealing of packets by the assayer. The branch officials had to ensure that immediately after pledge
of ornaments& verification by officer, the jewel loan bag should be transferred to the safe after the details are
entered. Gold packets after appraisal & sealing were not kept in safe custody immediately but left with the
assayer for keeping in safe custody in the evening only. Branch has failed to ensure that if for any reason the
jewels are handed back to the pledger/assayer, they should be appraised once again before accepting them for
keeping in safe custody. On the instruction of the assayer in the guise of the closure of jewel loan accounts
jewel packets were taken out from the safe custody. The branch has failed to check the credibility of every
existing appraiser at branches periodically and ensures to examine the desirability of retaining them
periodically by the Branch Manager. During re-assaying process of the pledged jewelry in the Gold Loan
accounts at each quarter and during RBIA inspection the re-assaying to be carried out involving officials and
assayer of another branch. The branch has involved his branch assayer also during reassaying which he could
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue X October 2025
Page 989
www.rsisinternational.org
be able to conceal the fraud done by him. During the regular re appraisal internal audit, the verifying officer
were not vigilant and could not notice the manipulation of the assayer of showing the same jewel already
reappraised (during earlier verification) packets again and again for verification purpose.[3] Officials
discovered a scam at Bank of India's Khairatabad branch involving Rs 4.4 crore in loans against fake gold
ornaments. Employees, an authorized gold evaluator, and customers collaborated to commit the fraud. The
issue came to light when a suspicious colleague revalued the pledged ornaments, revealing the scheme. [4]
India's banking sector is growing rapidly, necessitating more efficient and accurate audit processes. Traditional
bank audits involve manual data processing, extensive documentation, and subjective decision-making, leading
to potential errors and delays. AI and Excel can address these challenges by automating data validation,
improving report accuracy, and reducing audit times. The AI-powered system demonstrated a 40%
improvement in report accuracy, enhancing audit quality and compliance.[5] Tribhovandas Bhimji Zaveri
Limited (TBZ) is among India’s largest jewellery brand. The 155-year-old brand has adopted the digital path.
The company uses a hybrid cloud solution that primarily hinges on Oracle Cloud. The jewellery retailer is also
embedding small IoT devices (similar to barcode/RFID tags) in high-value jewellery to understand whether
they have been tried, how many times they’ve been tried, or sold or unsold.[6] The SAP Architecture Center
offers a place that provides solution reference architectures, helping businesses adopt SAP solutions to turn
data into valuable business insights. Every software architecture is unique, built to deliver the specific
outcomes of your industry, line of business, or country of operation. As such, you will identify areas where this
repository can be enhanced with new or updated reference architecture content. [7] Mermaid is a JavaScript-
based diagramming and charting tool that renders Markdown-inspired text definitions to create and modify
diagrams dynamically. With Mermaid, you can create various types of diagrams using simple text-based
descriptions.[8]
Problem Description
The conventional gold loan process in banks relies heavily on manual verification and paperwork, making it
vulnerable to asset manipulation and operational inefficiencies. Customers are required to be physically
present for loan renewal and gold retrieval, leading to long waiting times, inconvenience, and a lack of
transparency in asset tracking. These challenges not only affect customer satisfaction but also pose legal risks
due to potential unauthorized handling of collateral. There is a critical need for a technology-driven solution
that integrates IoT to digitally monitor gold assets, streamline banking procedures, and ensure secure,
transparent, and user-friendly handling of gold loans throughout their lifecycle—from pledge to renewal and
return.
Proposed Architecture
Fig 3.1 Architectural Design
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue X October 2025
Page 990
www.rsisinternational.org
The architecture supports end-to-end digital transformation. It leverages AI, analytics, and event-driven design
for smarter decisions. It’s built on a cloud-first, modular approach, allowing scalability and flexibility. This
architecture diagram illustrates how various components within the SAP ecosystem work together to enable
intelligent, cloud-based business operations. Summarized below is a breakdown of each layer and interaction:
Customer Interaction Layer
Customer interacts with the system through:
IoT Devices – Smart device that collect real-time data.
Mobile Apps – User-facing applications for input, monitoring, or control.
These interfaces are the entry points for data into the SAP system.
SAP Business Technology Platform (BTP)
This is the central integration and processing hub. It receives data from IoT devices and mobile apps and
enables various services:
Mobile Services – Manages mobile app connectivity, authentication, and data sync.
Event Mesh – Facilitates real-time event-driven communication between services.
SAP Build Apps – Low-code/no-code tools for building custom applications.
SAP AI Core & AI Launchpad – Hosts and manages AI models for intelligent automation and decision-
making.
SAP Analytics Cloud – Provides dashboards, reporting, and predictive analytics.
This layer transforms raw data into actionable insights and intelligent workflows.
SAP S/4HANA Cloud
This is the enterprise resource planning backbone where core business processes are executed:
Loan Management – Handles financial products, customer loans, and related workflows.
Financial Management – Manages accounting, budgeting, and financial reporting.
These modules consume processed data from the BTP to drive business decisions and operations.
Data Flow & Integration
Arrows in the diagram show how data flows:
From Customer interfaces → into SAP BTP → then into S/4HANA Cloud. This flow enables real-time,
intelligent, and automated business processes.
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue X October 2025
Page 991
www.rsisinternational.org
Core features of the Smart IoT device:
Fig 3.2 Smart IoT device
1. Gold Purity Sensor
Technology: Uses XRF (X-ray fluorescence) or ultrasonic resonance to measure karat level (example 22K,
24K).
2. Biometric Locking
Fingerprint Sensor: Capacitive sensor embedded into the jewellery clasp or surface.
OTP Verification:
Dual authentication via mobile app (OTP sent to registered number/email).
Fail-Safe: If fingerprint fails, OTP-only mode activates with time-limited access.
3. Location Tracker
GPS + LoRaWAN/Bluetooth: Real-time tracking with geofencing alerts.
Anti-theft Mode: Sends alert if jewellery is moved outside a safe zone.
Last known location: Stored in cloud for recovery assistance.
4. Connectivity
IoT Protocols: Wi-Fi, BLE 5.0, and optional NB-IoT for low-power wide-area tracking.
5. App Integration: Android/iOS app for control, alerts, and purity logs.
Cloud Sync: Data stored securely for insurance and resale verification.
6. Security & Tamper Protection
Tamper Detection: Vibration and pressure sensors trigger alerts if forced removal is attempted.
Self-Locking Mechanism: Auto-locks if unauthorized access is detected.
Encrypted Communication: AES-256 encryption between device and app.
INTERNATIONAL JOURNAL OF RESEARCH AND SCIENTIFIC INNOVATION (IJRSI)
ISSN No. 2321-2705 | DOI: 10.51244/IJRSI |Volume XII Issue X October 2025
Page 992
www.rsisinternational.org
7. Power & Build
Battery: Rechargeable Li-ion micro-cell (3–5 days standby). Charging: Magnetic contact charging or kinetic
energy harvesting.
8. Material: Medical-grade biocompatible casing (gold-plated titanium or ceramic).
Empirical Customer Onboarding:
A customer walks into a bank to pledge gold jewellery for a loan or renewal. The jewellery is tagged with an
IoT device (example - RFID or NFC sensor) that tracks its location and integrity. The customer downloads a
mobile app provided by the bank if registering the first time.
End-to-End Workflow:
Customer registers via mobile app and pledges gold.
IoT device tags the jewellery and streams data to SAP BTP.
AI audits the asset for authenticity and valuation.
Event Mesh triggers alerts for suspicious activity or renewal deadlines.
Analytics Cloud generates reports for customer and bank officials.
S/4HANA Cloud updates loan and financial records automatically.
CONCLUSION
This paper proposes an IoT-integrated asset tracking application that offers a transformative solution for
Glided Financing to enable renewal decisions, real time location alert, stopping counterfeit and corrupt
valuations mechanisms providing a hassle free, touchless and eco-friendly digital customer experience. It
secures assets, empowers users with real-time control, and delivers a superior digital experience. This
architecture can serve as a blueprint for fintech’s aiming to modernize asset management and customer
engagement. Further tweaking the IoT device can enable scalability across other industries.
REFRENCES
1. https://www.cbsnews.com/news/why-gold-is-liquid-asset-what-that-means-for-investors/
2. https://www.airtel.in/blog/gold-loan/glided-financing-how-financing-is-secured-against-gold-assets/
3. https://www.bankofbaroda.in//media/Project/BOB/CountryWebsites/India/pdfs/gold-loan-case-
study.pdf
4. https://timesofindia.indiatimes.com/city/hyderabad/bois-telangana-branch-loses-over-rs-4-crore-to-
loan-fraud-finds-pledged-gold-ornaments-fake/articleshow/114541725.cms
5. https://ai.icai.org/usecases_details.php?id=16
6. https://retailjewellerindia.com/how-155-year-old-brand-is-redefining-jewellery-retail-using-technology/
7. https://sap-solution-advisor-webapp.cfapps.us10.hana.ondemand.com/solution-architecture-generator
8. https://mermaidviewer.com/
