The world has completely transformed since the arrival of the internet. From bulky desktop computers to sleek smartphones, everything about this industry has evolved in a colossal way. Countless augmentations have made their way into the landscape of the internet, which has influenced our lives more profoundly than we can consciously imagine.
One such augmentation in the internet world has been the Internet of Things, more commonly called IoT.
The Internet of Things is the assimilation of objects, or things, into the world of the internet. These objects can range from things as common as kitchen appliances to airplanes, which can be connected and interlinked to collect and share data using the internet as the base medium. With the advent of computer chips into the common area, not a lot of rocket science and ambiguity remains to transform everyday objects into IoT. By connecting these devices, we can engage with smarter objects that supplement comfort in our lives.
How Does IoT Work?
There are mainly three parts to IoT for a common object to join the union:
The first necessary component of an IoT is a device that has IT (information technology) capabilities. This device can be anything, speakers, a car, or even the air conditioning system in your home. The primary task of this device is to read, collect and transfer information using inbuilt applications or software.
IoT Software and Application
The software or IoT application built into the device using computer chips makes up the second component of IoT. This software or application is the medium used by the device to read, collect and transmit data received from user inputs. These applications use advanced technologies like artificial intelligence and machine learning to process and analyze data, which enables the device to respond correctly and intelligently to all user inputs.
The third component that completes the IoT cycle is the user interface that allows the user to interact and engage with the smart device. The user interface is mostly graphical and can be built into the device if it is large enough or it can be in the form of a mobile application or website that allows the user to connect and operate the smart devices.
The entire process in an IoT communication system broadly involves three steps. In the first step, the user feeds in the information collected and transmitted by the device. The IoT application or software analyzes this information, using the internet in the second step. The third step mainly involves the result or the response that the application churns after fetching details and completing the analysis. This response is then relayed to the user, completing the cycle.
Facts and Figures of IoT
The IoT market has become gigantic as more participants flood in every day. There are more than 50 billion IoT devices actively operating globally currently. The amount of data that these devices generate, is more than 4 zettabytes, which is more than 4 trillion gigabytes. By 2025, the IoT market is estimated to cross $14 trillion in value.
The Biggest IoT Companies
There are uncountable companies that have become key contributors to the IoT market. But the ten leading this industry are:
Major Industries Influenced by IoT
Although IoT has had an influential impact on many sectors, the five most heavily impacted industries are:
IoT and Fintech
The scope and reach of fintech and IoT both individually have been witnessed by the entire world. Both these industries have proven to disrupt the usual systems that we were habitual of till a few years ago. With both these industries gaining ground and bridging gaps between them, many developments have prompted the upsurge of tremendous possibilities and opportunities.
Is IoT the Future of Fintech?
Voice commands, smart cars, smartwatches, contactless cards, etc., have become our reality more now than ever. With IoT gaining moment in other industries, its role in fintech is also steadily gaining momentum. Banks and financial institutions are realizing the potential of this powerful technology.
The IoT technology is disrupting the mainstream banking industry by introducing novel ideas like voice banking, smart branches, contactless payments, new verification systems, and many more.
In the case of voice banking, the customer’s voice is recorded, verified, and used for conducting banking transactions over the phone or online.
Smart branches incorporate the benefits of technology at every step by allowing cardless transactions and providing instant services like account opening, eKYC, etc.
With the onset of the pandemic, contactless and remote services gained tremendous popularity for their relevant applicabilities. Contactless payments became a game changer in processing payments by allowing users to touch or tap their smart devices like smartphones, smartwatches, or even bank cards to enable payment.
New technologies that supplement quicker results and shorter time frames to perform transactions are facing an increased demand globally. Authentication of customers using different technologies like facial recognition or voice recognition is becoming synonymous with the digital age.
With IoT and fintech integrating pathways, the two most affected segments would be customer experience and data management. IoT devises new ways of allowing better and faster transactions while continuously collecting, processing, and analyzing data received from customers. This process helps shape the customer experience industry better, while also improving the standards and quality of data.
This way, IoT has already become an integral part of fintech, and the future only looks brighter seeing these two industries grow together.