Pub. 8 2018 Issue 2

5 ISSUE 2. 2018 Consumer IoT Players Much of the news today revolves around the development and application of ‘first generation’ platforms and devices. Some of the largest tech players (Google, Apple, Amazon and Samsung) are developing wearables and voice-first devices for personal use. Ad - ditional hardware and software manufacturers are extending these ecosystems, taking advantage of open development platforms. At the foundation of all of these initiatives is the cultivation, analy- sis and application of data that can help build seamless connections between solutions, creating engagement that simplifies a consumer’s life. Early successes include how Uber has combined locational tools, real-time pricing/demand analytics and integrated payments to provide a better short-range transportation solution. ”IN THE IoT ECOSYSTEM, WILL BANKING FIRMS BE AN INTEGRAL PART OF THE DELIVERABLE … OR ONLY BE THE ‘DUMB RAILS’ IN THE BACKGROUND?” As more firms enter the IoT marketplace, it is important to watch the partnerships developed and the solutions provided. Especially with payment integration, will banking firms be an integral part of the deliverable … or only be the “dumb rails” in the background? The following are some of the top IoT platforms storing and analyz- ing the big data insights for IoT players: • Amazon Web Services • IBM’s Watson • Microsoft Azure • Oracle Integrated Cloud • Cisco IoT Cloud Connect • Salesforce IoT Cloud IoT Use Cases in Banking While not grabbing front-page news, the banking industry is starting to find ways to leverage IoT capabilities. A survey found that 64.5 percent of global banking executives monitored their customers through mobile apps on smartphones, tablets and other digital devices. In addition, 31.6 percent of banking organizations used the IoT to monitor retail locations (e.g., bank branches), 21.1 percent used digital sensors to gather product performance data and 15.8 percent used IoT sensors in wearables to track customer product usage. Financial companies have prioritized customer and product mon- itoring in response to higher levels of online fraud, difficulty with identity verification and fears of hacked computer systems and networks. Banks are also using the IoT to monitor and collect data about their customers’ financial transactions, while lenders are ex - ploring ways to finance and track assets and value collateral based on sensor data. More advanced IoT implementations include the ability to conduct basic banking using wearables (smart watches or fitness bands) and voice-first devices (Amazon’s Echo), the integration of invis - ible payments in transportation (Uber) and restaurants (Dine and Dash), and the leveraging of smart home appliances (Amazon Dash, Samsung Family Hub refrigerators). Additional tests are also beginning with the Amazon Go™ grocery and the inclusion of Amazon Echo capabilities in automobiles. The rapid expansion of the Internet of Things (IoT) offers payments companies an opportunity to expand beyond mobile phones, cards, and point-of-sale devices, to a broad and diverse ecosystem of inter- net-connected devices. This is enabling the beginning of “invisible” or “connected” payments. According to a Paga survey, executives expect consumers to start using connected devices for payments in the near term. • Wearables: Usually including smart watches and bands, 59 percent of global banking and insurance executives expect wearables to become a common payment device for consumers within two years. • Wearables beyond the phone: While most wearables are teth- ered to a smartphone, stakeholders are pushing the boundaries to include rings, key fobs and even clothing and VR devices. • Smart home devices: 24 percent of respondents said they believe consumers will commonly make transactions using appliances or smart home controllers in the next 2 years. These categories range from voice-first devices (Amazon Echo) to the Amazon Dash and even Internet connected appliances. • Connected cars: 20 percent of executives said they think peo - ple will pay for things through their cars in two years. Beyond just tolls, fuel and parking, car-based payments could eventu- ally include drive through restaurants and other applications using the car’s infotainment systems. Importance of Data and Analytics Big data analytics refers to the ability for an organization to source, aggregate and analyze large amounts of structured and unstructured data (sensors, social, text, email, video, etc.). The key is not just understanding the interrelationships of these sources, but also being able to apply the learnings for the consumer. Many of these capabil- ities are in the early stages of adoption. As mentioned, data and advanced analytics is the foundation of value for Internet of Things solutions. But unlike the type of limited data sets banking is used to using in delivering financial services to consumers, the layers and sources of data in the IoT world are ex - Internet of Things (IoT) w Continued on page 6