The term “Internet of Things” was coined by Kevin Ashto back in 1999. Nearly two decades on, the technology has not been used to its fullest potential. This is mainly due to two challenges – privacy and security. Technology has grown to gain insights from data in real time for business outcomes, yet human beings are apprehensive over breach of security and concerns over confidentiality, integrity, availability and most importantly, the abusive control of personal data. (Trust remains the business currency for the new-age consumer.)
IoT devices have permeated industries, from consumer products to manufacturing processes and public services; however, the banking domain remains at the cusp of influencing consumer financial behavior today. Who would have imagined the surge of the Quantified Self Movement fuelled by the IoT and wearables industry, collecting raw data continually on various vital parameters and churning them into meaningful insights related to consumer health and fitness, insurance claims processing or flexible interest rates? Many more autonomous banking related IoT use cases have been identified since, such as a cars making payments on user authorization or underwriting decisions influenced by IoT monitoring.
Cross-disciplinary functions seamlessly blend in an IoT-connected ecosystem. It is no paradox to state that the next big thing will actually be multiple, small heterogeneous “powered-things” without a visible user interface, that can handshake data and create a sensor-driven marketplace to drive decisions. Several vendors will offer devices at lower prices, driving the market; however, security and privacy discipline by IoT manufacturers and integrators will have to instil confidence and promote adoption of these ubiquitous devices in mass-market and niche segments. Understanding the threats involved should begin with a breadth- and depth-first approach that can create a security lock.