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The Opportunities of IoT in Fintech

12 months ago by Luigi Muscat Filletti
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IoT, which stands for Internet of Things, is a new software development trend taking multiple industries by storm and showing particular potential within the Financial Services industries of the world. Fintech is welcoming the innovative IoT technologies with open arms, as online banking begins to direct itself towards the possibilities offered by IoT which propose enhanced ATM experiences, create smarter online payment options through eWallets, simplify risk management for home and vehicle insurance and provide greater financial support and advice through the monitoring of customer spending patterns and behaviours, hence offering additional possibilities for careers in finance and banking in Malta.

Digital innovation is generating further career opportunities in Technology, as the IT industry in Malta is seeing an exponential growth in software developer job opportunities within the Financial Services, once more merging the high-reaching sectors of Finance and Technology which are looking to recruit top talent to fuel their ambitions.

So, how does IoT really work?

Complemented by the growth of AI technology, IoT allows users to have increased control over the devices and appliances which they use on a daily basis, and therefore such technology has the power to change the way we interact with these everyday devices and alter how we conduct everyday practices, such as ordering goods, controlling home appliances (the rise of smart homes), making reservations for leisure and entertainment services as well as in the way we interact with services provided by banks and businesses.

In simpler terms, IoT is a continuous network of everyday devices which are interconnected through WiFi to share and communicate data to enhance user experience through smart processes. From household appliances to vehicles, these devices are connected to online servers and synchronised accordingly to facilitate the demands of the user (normally through mobile apps on smartphones), and by doing so provide greater power to the end user.

What does this mean for Fintech?

We are living in a digital age in which the smartphone has become the remote control of our society - the possibility to share information through multimedia formats to a range of audience spanning the globe, the ability to purchase products and services online and the capability to store massive amounts of data on the cloud are only the start of what this technological revolution is promising. Today, everyone is constantly connected to the internet - whether for work or leisure, peoples’ mobile devices are always turned on and ready to be used under an internet connection.

Therefore, devices providing IoT services are constantly connected to online servers, meaning that the user’s decisions through these devices are recorded and stored in customer databases. This feature consequently allows banks deeper insight on its customers which can be used to develop new and improved services based on customer behaviours and reactions. Ultimately, IoT has the power to increase the development of Fintech services through the processing and managing of customer data, as well as the monitoring of such data, to be used to bolster product and service development.

Besides the improved acquisition of customer data, banks can up their cybersecurity game as customers’ devices would require customer authentication through face recognition, voice and fingerprint identification across devices providing online payment methods. Through the introduction of wearable tech, such as a smartwatch, users will be able to complete online financial transactions through their eWallet at the flick of a wrist, meaning that the security provided by such services must be strong, thus bringing more employment opportunities for individuals in IT in cybersecurity fields.

As the Financial Industry is adopting IoT technology, it is certainly influencing more sectors to follow suit. As an industry-related example, insurance companies are making use of IoT services as some car manufacturers are producing their vehicles with sensors with in-built IoT functions which can be connected to the service providers of the insurance company of the customer’s choice. The sensors would monitor the driver’s behaviour in relation to speed and steering in accordance to the speed limits on roads through GPS technology. This would assist issues related to road accidents and identify which drivers are labelled as safe and trustworthy, providing a win-win situation for company and customer.

In addition, organisations can also optimise their sales and marketing efforts through proximity marketing which operates through IoT technology. Using location-based messaging can improve customer experience, as companies can notify users about promotions and special offers when they are within a certain radius of their store. Such notifications can be generated through a kind greeting message and furthermore prompt users to check out what’s on offer. Marketing professionals can also make use of IoT technology through the collection of data and real-time analytics to better understand customers’ decisions and thought processes.

The future of IoT, and what this means for Recruitment Opportunities

This groundbreaking technology is only at its humble beginning and is predicated to continue making waves in the Fintech sector. In terms of recruitment, such technology is bringing about a wider range of career opportunities in software development, as the designing and developing of such complex programmes and operating systems require professionals in technology to apply their expertise. Talent in Finance and Technology continues to be sourced as the Financial Services industry in Malta carries on growing steadily by providing excellent career opportunities in Fintech in Malta. As technology continues to grow, companies must adapt with the times and implement such digital innovation in their operations and strategies, all centred around the end user who is always connected to the internet.