3. What is IoT?
• The Internet of things (IoT) is a system of interrelated
computing devices, objects, animals or people that are
provided with unique identifiers ( UIDs ) and the ability to
transfer data over a network without requiring human-to-
human or human-to-computer interaction
• A thing in the IoT can be a person with a heart monitor
implant, a farm animal with a biochip transponder, an
automobile that has built-in sensors to alert the driver
when tire pressure is low or any other natural or man-
made object that can be assigned an IP address and is able
to transfer data over a network.
• IoT is a sensor network of billions of smart devices that
connect people, systems and other applications to collect
and share data.
4. Why IoT?
• Organizations in a variety of industries are using IoT to operate more
efficiently, better understand customers to deliver enhanced
customer service, improve decision-making and increase the value of
the business.
• In fintech industry IoT has been used extensively for security and
payment processing.
5. IoT ecoystem
• An IoT ecosystem consists of web-enabled smart devices that use
embedded processors, sensors and communication hardware to
collect, send and act on data they acquire from their environments.
• IoT devices share the sensor data they collect by connecting to an IoT
gateway or other edge device where data is either sent to the cloud
to be analyzed or analyzed locally.
6
8. IoT-based Smart Farming
Utilize wireless IoT applications to
collect data regarding the location,
well-being, and health of their
livestock
Monitor pregnant cows:
• Sensor powered by battery is expelled
when its water breaks.
• This sends an information via the Internet
to the rancher.
9. IoT for the Elderly
• With a built-in accelerometer that
automatically detects falls
• Medication reminder
• With a GPS, which allows an emergency
operator to locate and provide directions
to the individual.
11. Smart Cup
https://www.myvessyl.com/
It can hold 13 ounces of
liquid. The battery takes 60
minutes to fully charge and
will last for 5-7 days. Also
has wire-free charging.
Calculates the water intake.
13. Smart Egg Tray
Egg Minder syncs with
your smartphone to tell
you how many eggs
you’ve got at home (up
to 14 eggs) and when
they’re going bad.
http://www.quirky.com/shop/619
20. IoT usecases in Finance: Customer Service
• IoT devices help provide prompt assistance for customers. For example,
smartphones (IoT devices) can notify account managers or customer relationship
managers when a customer walks into your office. This helps you address
customers’ concerns quickly and gain their trust and loyalty.
• Help customers navigate your office premises by providing them the
directions to the right executive. (e.g., Citibank allows customers to open
doors at ATMs with their mobile phones).
• Supports identity management (e.g. Nymi smart wristband utilizes an
individual’s heart rate for biometric authentication) and electronic ticketing
for query resolution.
• IoT gathers user data and monitors various digital habits of the users. That
information is immensely valuable for customer service. Banks can use that
information to provide personalized customer service to their clients.
• It will act as a record of the client and their financial requirements. The banks
can use that to suggest budget plans and other related things.
21. IoT usecases in Finance: Real-time Feedback
• IoT devices can gather intel from the user activity of a bank. Such data
can help the management team understand the financial needs of
different clients.
• A smart IoT system can help automatically send out useful
notifications. For example, the IoT network can send notifications to
the client when their balance is about to run out. The process can
work automatically without human assistance.
• IoT’s most important contribution to any industry is improving analytical
capacity. IoT is all about data. An IoT network can gather a mind-
bogglingly high volume of data. Special automated software then
processes the data and produces useful information for the industry.
• This data can be used to create great customer journeys for better
retention and engagement. This will help of the customers increase
feature adoption and achieve increased loyalty for their businesses.
22. IoT usecases in Finance: IoT payments
IoT payments using contactless cards, smartphones and smartwatches enhance
customer experience and make the payment process smoother
Smart Wallets
• Many wearables can make payments. Fitness trackers, smart watches,
wristbands, and jewelry have smart features. They can let you access your
credit card or checking accounts from anywhere.
• These devices can work fine on their own. But they won’t offer you any
personalized features. The use of IoT is very prevalent in these devices. They
collect data and make adjustments to certain features based on your habits.
These devices can help you complete transactions faster with the help of IoT
in banking.
23. IoT usecases in Finance: Credit risk
management
• IoT allows to calculate the real-time data of client's
assets to improve the credit risk management.
• Send notifications and alerts to the salesperson and
finance teams when they deal with high risk customers.
• Banks can use it to gather information on their clients.
That is very helpful in the case of loans. Like the real
estate industry, banks can use an IoT network to
monitor the economic activity of potential loan
applicants.
• This helps to keep the bad debt at minimum
24. IoT usecases in Finance: Fraud detection
• Bank and financial institutions are primary targets of the hackers.
• IoT in banking is a way to combat such fraud: Iot Device help in collecting the data from various
devices and web applications including the payment portals , servers and teller machines. Then
ML algorithms are employed to detect anomaly in identifying the cases of fraud, money
laundering and take corrective actions.
• The biometric system can help reduce the scope of fraudulent activities to a large extent. But
some cases tend to slip through the gaps in the system.
• IoT management helps make the clients aware of potential issues by sending notifications every
time they make a transaction
• The user can flag a transaction as fraud, which will freeze their account until further action. That
kind of fast action is only possible because of the real-time communication in the automated IoT
system.
25. IoT usecases in Finance: Auditing
• Traditional accounting involves a ton of paperwork.
• With IoT in accounting, all transactions can be tracked in real-time and sent to the accounting
department.
• Using IoT, accountants can easily track the audit trails of all the employees/business units - both
purchases and money credits are tracked.
• This process not only lowers the effort spent in the auditing process, but also ensures that the
accounting procedure is efficient and error free.
26. IoT Benefits:
Technology Optimization –
The same technologies and
data which improve the
customer experience also
improve device use, and aid in
more potent improvements to
technology. IoT unlocks a world
of critical functional and field
data.
27. IoT Benefits:
• Faster decision making:
• In-depth data analytics
• Business pattern analysis
• Market research
• Businesses can use IoT devices to collect and analyze clients’ data to gain
valuable insights into their needs and ensure faster decision-making. IoT
becomes even more powerful when combined with advanced
technologies such as AI. Finance leaders can more effectively analyze big
data and make informed, strategic decisions on how best to allocate
resources.
• IoT in banking can also view trading data from various sources. Private
and government-issued bonds and their trading volume help banks make
better management-related decisions.
28. IoT Benefits:
• Streamlines Finance and accounting operations
• Collaboration of different departments for efficient collection of
information.
• Automating this process rather than collecting and managing data
from multiple teams.
• Information collected and updated to cloud in real-time using IoT
devices
29. IoT Benefits:
• Monitoring and improving efficiency
• IoT helps track employee and business performance
• IoT devices wearables track the teams productive hours and
attention span and alert you if anything is missing
• Check if the ATMs and customer kiosks are functioning efficiently
or not.
30. IoT Benefits
• Improved Security [for clients]
• Security is the most crucial aspect of the banking sector. It’s almost
entirely built around people’s trust in a bank’s ability to keep their
assets safe. IoT technology can improve the fundamental infrastructure
of a bank’s security system.
• For example, IoT technology can use any device to gather data. The only
prerequisite is that the device must be able to send and receive
network transmissions. The CCTV, Smart alarms and other monitoring
devices are perfect sources for gathering data.
• Connecting all these monitoring devices into an IoT network will help
with real-time monitoring. The machines used for the transaction can
also have IoT implementation. Locking down the system in the case of a
security breach will become easier with an IoT network.
31. IoT Challenges: Security Issue [for Banks]
• IoT systems offer increased protection on the client-side. But it’s
a different story for the banks. The concept of IoT is relatively
new, and there are no set standards yet. But the most basic
aspect is using many devices to gather data.
• Skilled hackers can exploit the fragile security of connected
devices to harm the IoT network. They may not steal confidential
information, but they can make the system give wrong feedback.
• This list of devices is very broad. It can be humans with various
gadgets, smart security cameras, ATM booths, and many others.
The problem with this system is that it’s impossible to secure all
these devices with the same level of security. People can easily
tamper with the feedback devices and give false data to the IoT
network.
32. Securing IoT Devices
Authentication – IoT devices
connecting to the network create a
trust relationship, based on
validated identity through
mechanisms such as: passwords,
tokens, biometrics, RFID, X.509
digital certificate, shared secret, or
endpoint MAC address.
Authorization – a trust relationship
is established based on
authentication and authorisation of a
device that determines what
information can be accessed and
shared.
Network Enforced Policy –
controls all elements that route and
transport endpoint traffic securely
over the network through
established security protocols.
Secure Analytics: Visibility and
Control – provides reconnaissance,
threat detection, and threat
mitigation for all elements that
aggregate and correlate information.
33. IoT Challenges: Redundancy
• IoT produces a lot of data. An industry as
large and active as the banking industry
will no doubt share this quality.
• The thing about data gathered through
such means is that 90% of it is useless.
Most of the data won’t give any beneficial
information to the banks. So, it will take a
lot of data processing to glean the useful
bits.
34. IoT Challenges - Privacy
• Privacy – The
sophistication of IoT
provides substantial
personal data in
extreme detail
without the user's
active participation.
35. • Complexity – Some
find IoT systems
complicated in terms of
design, deployment,
and maintenance
given their use of
multiple technologies
and a large set of new
enabling technologies.
IoT Challenges - Complexity
36. • Compliance – IoT, like
any other technology in
the realm of business,
must comply with
regulations. Its complexity
makes the issue of
compliance seem
incredibly challenging
when many consider
standard software
compliance a battle.
IoT Challenges - Compliance
37. Next steps for Future: Implement IoT and
automate the financial services
• Loop for proven use cases: Example - Payments
• Securely managing Data : Using IoT technologies generates
millions of gigabytes of data. Make sure the processing units and
governance rules are developed to handle such a large volume of
data securely
• Implement adequate cyber security measures: weaker defenses
are easy target for hackers. The IT teams and consultants will help
with adding necessary security measures.
• Track return on investment (ROI): IoT investments are expensive.
It is crucial to ensure that the capital has been spent wisely. Keep
track of how IoT has boosted the customer service or reduced the
times of audit when looking at ROI numbers.
