Understanding the Internet of Things

Internet of Things At-a-Glance

125 billion devices will be connected online by 2030.

We call this growing network of connected devices the Internet of Things or IoT.

IoT brings many opportunities for banks to enhance their offerings...

...but it also comes with new challenges in managing risk and mining data.

More Ways to Pay

Digital wallets embedded across many devices will enable a more seamless and automated payments experience.

Connecting with Customers

Connected devices will capture new data on consumer preferences and behaviors that help banks build better products.

Smarter Lending

IoT data offers new insights that can improve credit underwriting and reduce loan losses.

Data Management

With an influx of new data, banks will need systems capable of sifting out the noise from the meaningful insights.

Data Security

Every IoT object is a potential vulnerability, so advancements in device security will be needed before banks are fully comfortable using IoT data.

Data Privacy

IoT will raise important privacy questions, which will need to be considered before banks can use the data.

Three Core Principles

ABA believes in 3 core principles for how customer data should be treated and shared. These tenets are increasing critical to a health financial ecosystem as IoT takes shape.

• Security
• Control
• Transparency