Understanding the Internet of Things

In 2008, the number of Internet-connected devices surpassed the number of humans on the planet. By 2030, it is projected that more than 125 billion things—nearly 15 for every person on Earth—will be connected online. We call this growing network of connected devices the Internet of Things, or IoT.

Just about anything embedded with a sensor capable of sending or receiving data can become part of the IoT ecosystem. As the size and cost of embedded sensors has decreased, the potential for smart device deployment has greatly expanded. We have thermostats that set themselves to manage energy costs, video-enabled doorbells that allow homeowners to answer when away and smart beds that maintain consistent temperatures throughout the night.

IoT promises to reshape every industry—and banking is no different. Payments will become seamless as digital wallets are embedded across multiple devices, and highly granular data collection will enable greater customization and smarter loan decisions. However, with opportunity comes challenges. The vast quantities of data produced by connected devices will require smart strategies around data management, security and privacy.

Learn More

• Understanding the Internet of Things is a supplement to the Fintech Playbook.
• View the Internet of Things at a Glance