The use of OT/IoT devices has escalated rapidly over the last two decades: today about 127 new IoT devices are connected to a network every second. We can attribute this remarkable transformation to several technological factors, including the development of artificial intelligence implementations, such as machine learning, and the growth of cloud computing. While IoT devices are now commonly used across a wide range of industries – including construction, manufacturing, consumer electronics, infrastructure, and healthcare – the financial sector has been notably reluctant to adopt the technology. The main concern is IoT security, as making changes to a company’s infrastructure calls for extra caution when financial assets are at stake. Utilising the right tools to identify and mitigate network vulnerabilities is key for any organisation, but mission critical for banks and financial institutions that want to realise the many efficiencies and cost savings of using IoT devices. (In the financial and fintech space, IoT can streamline a variety of tasks, including strengthening fraud protection by employing on-site security systems that track every network connection. It also simplifies debt collection and provides an easy way to optimise customer service through capacity management.) The one thing never in doubt when talking about IoT technology? The hype. Due to the influence of IoT, over 90% of companies surveyed in 2020 were planning to increase their digital transformation activities.
Digital Transformation – DX
Better customer service also remains a top priority. Real-time data gathering systems enable increased responsiveness and better customer engagement while wearable technology and biometrics scanning are further streamlining payment and banking processes. Even on the back end, this technology has proven useful and some of the more sensitive banking databases have implemented scanners instead of passwords to track employee access. In the earliest stages of IoT development, banks focused mostly on security enhancements, utilising resources that would prevent fraud and increase physical security. Then the technology was used to improve customer experience via more advanced online banking systems: faster payment processing and better customer engagement through mobile services were unique differentiators for the more technically astute institutions.
Today the banking industry is exploring new ways to use IoT. Because video surveillance was one of the first industry-wide deployments of IoT, banks are now using advanced video analytics to mine this data and further reduce fraud. For instance, sophisticated applications, such as facial recognition, can spot a person who visits multiple locations back-to-back and send a suspicious activity alert to the appropriate party. Automated thresholds for time limits at ATMs can also be set and notifications sent when an individual lingers too long. Better customer service also remains a top priority. Real-time data gathering systems enable increased responsiveness and better customer engagement while wearable technology and biometrics scanning are further streamlining payment and banking processes. Even on the back end, this technology has proven useful and some of the more sensitive banking databases have implemented scanners instead of passwords to track employee access. With the digital revolution marching on relentlessly—driven in a big way by the proliferation of consumer-friendly IoT devices—the banking industry is increasingly getting in step with today’s realities and moving away from archaic banking practises that are totally inconsistent with the digital era.
Retail Customer Operations
ATMs were some of the first IoT devices deployed in the financial sector. While IoT has played a key role in optimising back-end processes and procedures for financial institutions, its use in customer-facing applications is equally important. Retail banking, in fact, developed one of the earliest examples of an IoT device: the Automated Teller Machine. ATMs have been streamlining the retail banking experience for decades by enabling real-time transactions without the need to interact with a human teller. Some ‘Smart ATMs’ even have live stream video support that allows customers to speak to tellers should they need assistance.
Financial organisations are also increasingly relying on AI applications to collect and analyse the vast amount of data generated by IoT devices. For example, digital personas can be created based on data collected from devices such as smartphones, tablets, and fitness bands. Then advanced analytics can provide detailed insights into each persona’s financial behaviour and AI can suggest the best banking products for a particular consumer profile or flag the potential for high-risk customers.
Top IoT Firms to Watch in Fintech
Better customer service also remains a top priority. Real-time data gathering systems enable increased responsiveness and better customer engagement while wearable technology and biometrics scanning are further streamlining payment and banking processes. Even on the back end, this technology has proven useful and some of the more sensitive banking databases have implemented scanners instead of passwords to track employee access. Dynamics, Inc This ambitious start-up is introducing smarter payment cards. Their IoT enabled banking cards allow for real-time interactive payments between the consumer and their bank. This flexible smart card can provide banking options instantly, from credit or debit cards, through to loyalty cards, all on a single piece of long-life battery-powered plastic through its smart screen. This card also enables consumers and banks to reduce the risk of fraud, and enables number changing on the fly if details are suspected of being compromised. Kontakt.io New York-based Kontakt.io has created a new beacon that will replace expensive point-of-sale hardware with small, low-energy Bluetooth beacons in order to streamline the shopping process and provide more time for browsing other parts of your favourite stores, while still generating data on consumer habits for businesses. Traditional point-of-sale (POS) systems have been linked to various security hacks over the past several decades, and Kontakt’s Bluetooth technology essentially eliminates such threats. It’s worth noting that the worldwide market for beacons is expected to grow to 61.5% by 2024.
Detect. Classify. Monitor. Defend.
CyAmast fully recognises the opportunities and risks that financial IoT technology presents to banks and financial institutions. As we see a raft of changes in IoT fintech, adaptable solutions are needed to manage and secure the new operating paradigm. CyAmast offers a revolutionary asset discovery and monitoring solution. From customer devices to internal operations, IoT is changing the face of banking and finance. CyAmast brings powerful discovery, monitoring, and classification tools to your company’s IoT landscape. Once all active IoT and OT devices are discovered on a network, CyAmast uses patented machine learning ‘models’ to classify the devices, such as CCTV cameras, for example, by make and type. The device is then catalogued, and the inventory automatically maintained within the CyAmast platform. Regardless of the industry, CyAmast improves security and operational efficiencies and can not only identify anomalies before they become a crisis, but also provide actionable capabilities to isolate or eliminate them in near real time.