Internet of Things – Mobile Financial Services

Internet of Things – This article investigates the many Internet of Things (IoT) scenarios for which the industry has a solution, as well as how to market or position the solution. The convergence of payments, physics, blockchain, and artificial intelligence, which is changing digital money usage, is critical to the future of payment intelligence. Mobile Payments marries the Internet of Things (IoT) and explores the expansion of the Internet of Things (IoT) and how it may effect financial services.

Internet of Things – MFS

This article explores the different scenarios  for Internet of Thing – IoT ; which the industry has a solution at hand, how to present/position the solution – Mobile Payments gets married to IoT and to discusses the growth of the Internet of Things (IoT) and the ways it could impact financial services. As more consumer devices connect to networks and people, new opportunities and challenges arise. can we call this as Revolution.

New opportunities and challenges emerge as more consumer products link to networks and people. By utilizing science and technology to increase security and efficiency, this strategy greatly advances digital payments. It enhances our understanding, safety, and efficiency, yielding impressive outcomes.  Through blockchain and AI, payment processes become simpler and more secure, ensuring transparency and tamper-proof transactions. Smart contracts further simplify transactions and unlock new opportunities for creative ideas across industries.

New technologies, the way I am trying to understand and their contribution to the formation of our day-to-day activities, work and life. At-least my day that is usually long began to contribute almost 90 percent of time towards Internet or on Internet & Mobile.

The arrival of new era, IoT in the coming period will spread so much that it will enter into every area of our lives, we will become units in the internet world. We will no longer sit on our computer or browse on mobile phone. Internet will become essential component of our life like Air, Water and Food and would get into our life so much that we can’t be separated from this. Difficult to say will it be good or bad thing.

What is the Internet of Things?

The IoT (Internet of Things) is a network of physical objects embedded with software, sensors, and connectivity. The “things” within this network can sense, process, and share data with each other. Current examples of this technology include shoes with GPS trackers, Apple technology with watches, and Google technology with wearable glasses. From different research and market inputs and studies, the estimated size of the IoT (Internet of Things) market varies with a huge gap.

For instance, Gartner expects it to include nearly 26 billion devices with a “global economic value-add” of $1.9 trillion by 2020. Others are optimistic. The International Data Corporation (IDC), for one, estimates that the universe of things connected to the Internet will generate nearly $9 trillion in annual sales by 2020.

To clarify, the Internet of Things (IoT) is not a novel concept but rather one that has existed for an extended period, evident in the presence of established machines such as point of sale (POS) systems in retail establishments. The forthcoming technology transformation lies in the manner in which human-machine interaction evolves.

The IoT encompasses a vast array of interconnected entities, capable of being connected to or adaptable to connect to the Internet, facilitating communication and information sharing among various “smart” devices. This encompasses an extensive range, spanning from household appliances, fitness and health monitoring devices, electronic gadgets, and home security systems. Day to day devices i.e. mobile phones, tablets, PCs, laptops, cars, water taps, and plugs, encapsulating virtually everything imaginable, including banking and financial portfolios.

Furthermore, the IoT extends its reach to encompass a myriad of devices, encompassing everything from smart cooking utensils and toothbrushes to GPS-enabled footwear and wearable technologies like watches and clothing, thereby offering an all-encompassing connectivity experience.

Unveiling the IoT’s Potential Impact: From Hype to Inevitable Evolution

People hailing from diverse backgrounds may question whether the Internet of Things (IoT) is merely a buzz worthy trend or an unavoidable progression in how individuals, devices, objects, financial systems with sensitive data and portfolios, and networks will interconnect in the foreseeable future. They ponder the potential marvels or mishaps that could reshape their daily lives and personal information.

However, we, the knowledgeable aliens encompassing IT and Financial Technologists, possess a clear trajectory and a well-defined approach towards realizing this transformation. Picture a scenario where my interconnected personal health planner communicates with my investment banking or personal banking system, prompting me to inject additional liquidity into my Mobile Payment instrument and wallet upon detecting an imminent health crisis, such as a heart attack or stroke.

Notably, the decision made by my personal health planner to enhance liquidity and instruct my investment bank portfolio to divest stocks or long-term assets, all without my direct intervention, may introduce excessive risk into the equation.

Those in financial services who have already implemented digital practices, such as Bank of America, will be in the best position to benefit from these new IoT technologies quickly. Increasing investments in wearable and sensor technologies indicate a major shift in development.

The IoT movement is now taking shape as separate industries and revenue streams get attention from professionals and experts, and older technology is being updated. Experts in domain design solutions and architecture to make technology smaller (Size) and cheap enough to put in almost anything According to Gartner research, there will be nearly 30 billion devices wirelessly connected to the internet by 2020. 

Which it self-declares a dollar value of $3 trillion with an assumption of an average cost of $100 per device, and this is only device marker services; support is on top of this. According to PwC’s 6th Annual Digital IQ Survey,  financial services is one of the top ten industries investing in sensors for devices like beacons in stores for coupons, etc.

Telematics and IoT Enhancing – Financial Services

As of today, the most common use for sensors is telematics, which allows devices installed in cars (car tracking devices) to transmit location data to owners and insurers. This also includes the ability to track a stolen vehicle and help in recovery, automatic crash notification, and vehicle data recording to force full actions by the controller over telematics infra. Telematics also extends to tracking ships, cars, and trucks for fleet management and route optimization.

IoT merged with mobile financial services can ensure you can get fuel by giving your telematics number at a fuel station, and the tracking company can monitor fuel consumption as well as any fuel leakage or theft. You can also pay your parking tickets, renew your car registration, and buy discounted oil changes, and you will authorize all of this from your smart phone or any normal phone by SMS or USSD.

Apple introduced Apple Pay in 2014, which is again not new or innovative in mobile payments industry technology but gave a renewal chance to the IoT (Internet of Things) within the mobile financial services industry. Apple Pay users send secure mobile payments without compromising subscriber personal data (at least as expected and claimed). More seamless transactions make a big difference in creating a better customer experience.

Apple iBeacon technology allows retail customers to access location-specific coupons, product information, or recommendations while browsing in stores. Imagine you walk into a store to buy some clothes with your friends, but the store manager himself comes to greet you and take you to the section of your choice and taste as well as pocket size.

Now remember that small beacon thing that will notify the store manager about your entry. Give your CV to him to treat you like a special guest, and the bill is again paid upon your confirmation via phone. This digital ecosystem of physical objects will change the way financial institutions, systems, banks, or even your mobile wallets interact with you at the most basic levels. Bringing “things” (IoT) online will eventually make payment transactions implicit rather than explicit, as explained in the previous example.

Conclusion: Innovations also come with new risks. The deluge of new data is likely to complicate data management for financial services firm. And of course, cyber security may become an even greater challenge. The question that remains is how far will the Internet of Things go? How can other sectors such as banking and investment management leverage the IoT technology? But it may one day appeal to the self-tracking health junkie or tech-obsessed millennial covered in wearable tech.

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