“IoT” has been a buzzword for years, and initially bankers may have thought, “Okay, whatever.” That’s changing as the hype becomes reality. Banking executives surveyed by the Digital Banking Report noted IoT growth as one of the top predictions for the future of banking. 29% of respondents said IoT solutions will drive more than a fifth of all transactions by 2025, and another 39% said that will happen by 2030.
Citibank researchers predict the coming era of physical objects operating as autonomous financial actors — which they call the “Thing Economy” — will create new business models, ecosystems and opportunities for many industries, including financial services.
“Financial institutions that facilitate trillions of dollars in global transaction flows daily are well-positioned to lead and grow in the Thing Economy, which could dramatically increase payment volumes,” the Citibankers wrote in a blog. “In the shorter term, the merging of the physical and digital worlds presents a major opportunity to work with partners on innovations that can become new ventures and products.”
From Payments to Embedded Commerce
Many financial institutions are already aware of the potential opportunities for consumer banking from IoT. After all, mobile apps and contactless payments are part of the broader concept. But so is Amazon’s popular virtual assistant Alexa and the Apple Watch.
In retail applications there is also the cashier-less Amazon Go Stores with their “Just Walk Out” concept — with payments handled by artificial intelligence and RFID tags directly to phones or watches. All these are already training consumers to make semi-automated payments through personal digital devices.
Continue reading: https://thefinancialbrand.com/126891/banking-internet-of-things-iot-payments-embedded-commerce-wearable-trend/
Citibank researchers predict the coming era of physical objects operating as autonomous financial actors — which they call the “Thing Economy” — will create new business models, ecosystems and opportunities for many industries, including financial services.
“Financial institutions that facilitate trillions of dollars in global transaction flows daily are well-positioned to lead and grow in the Thing Economy, which could dramatically increase payment volumes,” the Citibankers wrote in a blog. “In the shorter term, the merging of the physical and digital worlds presents a major opportunity to work with partners on innovations that can become new ventures and products.”
From Payments to Embedded Commerce
Many financial institutions are already aware of the potential opportunities for consumer banking from IoT. After all, mobile apps and contactless payments are part of the broader concept. But so is Amazon’s popular virtual assistant Alexa and the Apple Watch.
In retail applications there is also the cashier-less Amazon Go Stores with their “Just Walk Out” concept — with payments handled by artificial intelligence and RFID tags directly to phones or watches. All these are already training consumers to make semi-automated payments through personal digital devices.
Continue reading: https://thefinancialbrand.com/126891/banking-internet-of-things-iot-payments-embedded-commerce-wearable-trend/
