The financial services industry is a prime target for IoT device compromise by cybercriminals. The reason for this is evident, as IoT end points predominantley convey personal information about customers’ finances, and largely facilitate money transfers. To complicate matters, almost all transactional data moves through the financial supply chain. As such, the IoT data could be secure at the originating financial organization, however it could be left exposed or just poorly protected at some other stop along the way. The article below provides some smart tips for integrating IoT technologies into financial organizations that will increase security and business efficiency as well.
Increased reliance on the internet of things (IoT) is one of the biggest trends in enterprise technology, and the financial services industry is a big part of that trend. And due to the nature of financial business, both the promises and the risks of the IoT in financial services are great.
To demystify the IoT a bit, an IoT device is anything with processing power that is not usable as a computing device. That covers point-of-sale (POS) devices, security motion detectors and even internet-connected coffee machines, to name a few. Gartner predicted that the world will see nearly 21 billion IoT devices by next year.
Many IoT devices used in the financial services industry are customer-facing. Banks, for example, can use IoT tech to form a higher-resolution picture of credit risk or to recognize customers as they come through the door for a smoother, more personalized customer service experience. Businesses can use IoT devices to collect more data about customer preferences and behavior, and financial institutions can gather real-time data from wearables to enable personalized product advertising.