Finance Monthly November 2019 Edition

48 www.finance-monthly.com FINANCIAL INNOVATION & FINTECH - IOT iven the wealth of statistical data which can be gathered from a range of devices within an IoT network, the applications of IoT and big data can go hand in hand. For example, retail banks can combine IoT and big data to offer increasingly personalised services to customers. Rather than providing a ‘one size fits all’ approach, banks can create personalised offers to customers by using IoT capabilities to analyse various aspects of its customers’ behaviour - including the regularity in which they visit merchants or purchase from them - and offer bespoke budgeting plans or financial products relevant to their lifestyles. Furthermore, the data from wearable payments technologies, for instance, could be used The Internet of Things (IoT) is growing rapidly. In 2010, people owned 12.5 billion networked devices; whilst it is estimated that by 2025 this number will have climbed to more than 50 billion. While the IoT has already impacted sectors such as manufacturing and healthcare, it is still a nascent technology in the world of banking. Research has found that banks have still not implemented IoT technologies within their organisations or in their products or services. In the long term, however, this is set to change. Reports have shown that 40% of financial services businesses are currently experimenting with IoT and big data. HOW IOT IS IMPACTING THE FINANCIAL SERVICES INDUSTRY David Murphy Managing Partner, Financial Services EMEA Publicis Sapient G