Will financial services be able to leverage the vast amount of insight available from Internet of Things (IoT) technology for the benefit of the consumer as well as the institution? A report from Deloitte and insights from several banking leaders provides a glimpse into the future.
The Internet of Things is defined as a way for devices that are connected to the Internet to communicate and share information with other ‘smart’ devices in real time. In context, these sensors would leverage the capabilities of big data, analytics and even artificial intelligence to anticipate needs, solve problems and improve efficiency.
Estimates of the size of the IoT market vary. Analysts and technology providers forecast added economic value of anywhere from $300 billion to $15 trillion by decade’s end. And FSIs will most likely be active participants in this transformation.
We already have products that use sensing and communication technologies in a range of consumer sectors, such as self-driving cars, ‘smart’ appliances and geolocational sensing on mobile phones. We are also seeing applications in business, with assembly line management being a focal area.
With the benefits of IoT, comes challenges such as in the area of security and privacy. With the explosion of devices and sensors, cybersecurity takes on a whole new dimension – not just for institutions but also for consumers. With more digital connections and information being transmitted, digital vulnerabilities are likely to expand exponentially.