Your Financial Future and IoT

The Financial Services industry will not be immune to the transformative changes of IoT. In the past, we have briefly mentioned that the Insurance industry will be affected by IoT and the use of Telematics. Telematics refers to the wireless devices and technologies that transmit data in real time back to the company, usually in the context of automobiles.

As my colleague Mike mentioned in his previous post "Talking Cars, Talking About You", cars will soon enough start transmitting back your driving pattern and behaviors back to external parties - including your insurance company. For example, Toyota has recently released a range of safety technologies that allows the car to transmit data back to sensors and other cars on the road that could alert drivers when there is an accident or traffic jam. By reducing accidents and having more information available, insurance companies will presumably pass on the savings to the better drivers and thus put more money in their wallet.

Banking is one area that coupled with IoT will excite the majority of us. Imagine a world where as soon you step up to your Bank's ATM, the sensors installed on the ATM starts to recognize your identity by communicating with your phone. The ATM will then take a picture of you and runs a biometric scan to confirm your true identity. After this is completed, the ATM will greet you by your first name and ask what would you like to do today. No more plastic cards to take in your wallet. Now that is what I call convenient.

The commercial real estate industry will also be affected in a positive way. With multiple sensors installed in a commercial building, a landlord or management company is able to better manage energy usage and security. We have already starting to see buildings with motion sensors that detect when a person walks in the room, adjusts lighting, and regulates the temperature. This data is also helpful because it detects the flow of people within the building and allows the company to improve productivity by moving teams that work together more closely to certain areas on the floor.

Shopping mall operators have also been experimenting with IoT devices - sensors that detect smartphone activity through WiFi - that allows them to track and analyze foot flow traffic within the stores and shed more light on spending habits. By analyzing the foot flow traffic on its properties, the operators can recommend ways to increase the attractiveness of stores and thus receive higher rental income. Now there is always the question of whether stores are invading their customer's privacy, but that is a topic for another day.

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