The Internet of Things will play an integral role in the future evolution of FinTech and other disruptive sectors. As more and more devices can communicate with each other, more data can be gathered, which gives valuable insights as to how FinTech companies can bring financial services to users all over the world. By nearly eliminating the human element from the equation, Internet of Things is making the world a far more efficient place.
Internet of Things Is Affecting All Industries
Whereas some people assumed the Internet of Things initiative would never gain any major traction in the long run, things are looking very different right now. To be more precise, there is almost no industry where the Internet of Things is not playing a major role already. Simplifying several aspects of life is valuable, as it allows humans to be more efficient and productive as well.
As soon as somebody mentions the Internet of Things, the discussion will eventually turn to home automation. Domotica systems have evolved over time, allowing consumers to control nearly any appliance in their home with a smartphone or tablet, even if they are in a different location.Thanks to this new disruptive initiative, as well as the FinTech sector, new forms of home automation can be developed, such as coffee makers purchasing new beans when the supply is running low, and having the order delivered to one’s home.
Perhaps the most popular industry to be affected by the Internet of Things is lifestyle and entertainment. Rather than looking for ways to entertain ourselves on a relaxing evening, our connected devices can “learn” from our behavior, and suggest things to watch or listen to automatically. Netflix’s suggestion service is just one example of how easy it is to use consumer data for a valuable and fun user experience.
Smart cities and infrastructures will benefit tremendously from the vast amount of connected devices as well. There are certain key issues in our way of life that need to be addressed sooner rather than later, such as making the power grid more efficient. Remote monitoring through a plethora of devices talking to one another will make this process a lot easier in due time.
Even the fitness and health industry, which have seen a great increase in popularity over the years, can benefit from IoT. The fitness tracker one might be wearing right now can communicate with other devices in a heartbeat, exchanging data and representing it in a visually pleasing format. However, there is still very little communication between competing brands, an issue that needs to be rectified at some point.
Other areas affected by Internet of Things advancements range from automotive to healthcare, smartwatches to agriculture, and toys to enterprise solutions. More importantly, there is the retail sector, which is where IoT and FinTech will come together and shape the future of shopping experiences.
Developing FinTech Solutions For IoT Devices
Contactless payments are labeled as one of the most recent FinTech innovations, even though this technology is not all that new. By enabling consumers to make contactless payments with their plastic card or mobile device, an Internet of Things-esque type of communication takes place.
That being said, there is a lot of room left for future improvements and new payment technologies. FinTech companies would be wise to pay close attention to the evolution of IoT, and embrace the technology powering this initiative for their own needs. Frictionless payment options are what consumers all over the world want, preferably without having to carry a wallet on them at any time.
With so many companies active in both the FinTech and IoT sectors, only good things can come from all of these efforts. The next few years will be a determining factor as to what will work, and what won’t. One thing’s for sure, though: there are exciting times ahead of us, and it will be interesting to see what companies can come up with next.
What are your thoughts on the possibilities between FinTech and IoT companies? Are there any projects you are looking forward to? Let us know in the comments below!
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When Internet of Things and FinTech Collide – Part IV: Location, Location, Location
When Internet of Things and FinTech Collide – Part V: Maturity
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