The Internet of Things (IoT) continues to evolve, further collecting and analyzing a vast amount of information. An article published in Finextra talks about the improvements and side effects the IoT is already bringing to the financial sector. In particular:
“About 2.5 to three billion people will come into the financial services space between the years 2010 and 2030. 95% of those will never visit a bank branch. They’ll get access to their value storage on a mobile phone. In the next decade, the bank account will be considered an artifact that is either in the cloud or on your mobile phone, not a physical artifact you got from the bank.”
An interesting change in consumer banking as a result of the IoT is that traffic to bank branches has and will decrease significantly, shifting customer acquisition strategies and reinforcing the digital 24/7 connection between consumer and bank. A steady stream of data means visibility, analysis, automation, and new financial products designed to improve the consumer experience or satisfy needs.
The IoT is having a similar effect across many industries, a key element is automation producing IoT payments. To learn more about how the Internet of things is influencing payments and what an IoT payment is, read Mercator Advisory Group’s report IoT Payments: How the Internet of Things Is Influencing Payments.
Overview by David Nelyubin, Research Analyst at Mercator Advisory Group