ChannelLife Australia logo
Industry insider news for Australia's technology resellers
Story image

Financial services in the age of IoT

Fri 29 Apr 2016
FYI, this story is more than a year old

Even if your company or organisation doesn’t provide technology as an end product, pretty soon, your products and services will be inseparable from technology.

Certainly, this is obvious for manufacturing companies whose products are rapidly and increasingly becoming embedded with MCUs, sensors, firmware and other technology to either gather input about its performance or its surroundings or deliver information to its users or both. This is the common world of the Internet of Things (IoT) most people talk and think about.

Clearly, if your washing machine, coffee maker, refrigerator, toaster, light bulb, printer or other device will be embedded with such capabilities, you need to plan for the their incorporation, lifecycle management (in tandem with the product(s), updates and appropriate user experiences with them. This, however, is not news.

What if your organisation is in financial services, say in insurance, investment, retail banking or consumer credit? You haven’t any industrial, mechanical or otherwise tangible (in terms of solid form) offerings into which to embed IoT capabilities, so you’re off the hook, right? Of course not!

Mobility and the importance of the smartphone (and ultimately a person’s entire compute framework encompassing laptops, desktops, smartphones, etc.) have forced you to be able to deliver at least a subset of services to mobile devices. But this is also not news (and by the way, I have seen the cute term “Fin-ternet of Things” used to suggest a relationship between financial services and IoT).

Those same financial services companies face disruption from an ever-increasing variety of entities, many of whom are focused on “micro”-something: micro-insurance, micro-payments, micro-lending and micro-investing are all real examples. And though large financial companies are not today suffering visibly from these competitors, there’s a significant risk that they’ll be much less attractive to consumers that over the next few years will have moved beyond simply being (technically) mobile to become part of what we call the digital mesh.

These customers will engage with voice-enabled services that in turn have automated, intelligent assistants (or in the near future, bots) carry out tasks on their user’s behalf, and they will be a voice command or button push away from conducting business anywhere at any time, because every “station” in the digital mesh will understand who they are as well as the context of their commands.

Before we get there, I’m sure there are rules of engagement to be addressed with respect to regulations, security, etc., but make no mistake — we’re headed there. And for traditional financial services organisations to compete effectively in this new world, they’ll have to take pages from companies like Amazon or Domino’s. Why? These companies’ fanatical focus on the customer and their ability to buy products or services has resulted in great technical implementations enabling customers to purchase seamlessly from them across a wide array of environments ranging from Dash buttons and Alexa-powered speakers (Amazon) to Facebook messaging and bots (Domino’s).

And the “micro” financial services providers? Startups like Trov (with a total of $38.8M in VC money after closing a $25M Series-C yesterday) offer on-demand insurance for personal items or property via mobile (i.e., I can insure my new bicycle on demand). Acorns (which just received $30M in additional funding from PayPal) offers mobile investing by rounding your credit and debit purchases to the next dollar and capturing the difference for deposit.

What’s common for these providers and others like them is (1) their almost total focus on the mobile user, (2) their ability to appeal to those with little time, patience or desire to follow traditional financial product paths (i.e., tech-savvy millenials) and (3) their use of information – with permission – to be able to target market precisely and to upsell and cross-sell regardless of the user’s environment. Amazon, Domino’s, Acorns, Trov and others like them are ready for the digital mesh: their offerings can be used, bought or administered easily and in nearly any technical environment the customer chooses.

Before a digital upstart begins to pick you apart by offering a service that you could offer if only you were nimble, technically savvy and clever enough to invent it, take a step back…er, forward. Explore new business models and ecosystems (traditional insurer Suncorp partners with Trov in Australia).

Understand the future of the digital mesh and the ability to fluidly understand customer context within it (Ford will embed Alexa voice services in future auto models). But with all this, realise that you will be going to market with and via technology in the future, and your products and services will thrive or die with their ability to take advantage of it – and your ability to develop and deliver to and through it.

By David Yockelson, Gartner Research VP

Related stories
Top stories
Story image
Cybersecurity
Infoblox's State of Security Report spotlights Australian remote work hazards
Attackers exploit weak WiFi, remote endpoints, and the cloud, costing 50% of organisations over $1.3 million in breach damages.
Story image
Wireless
Cradlepoint expands its Cellular Intelligence capabilities
Cradlepoint has announced additional Cellular Intelligence capabilities with its NetCloud service.
Story image
Cybersecurity
BlackBerry offers Kaspersky replacement cybersecurity for the channel
BlackBerry advises that users of Kaspersky software in Australia and New Zealand undertake a rigorous risk analysis of their current security posture.
Story image
Lightspeed
Lightspeed launches all-in-one marketing platform in A/NZ
ECommerce provider, Lightspeed has launched a new all-in-one marketing solution, Lightspeed Marketing & Loyalty in Australia and New Zealand.
Story image
Apple
Apple previews new features for users with disabilities
Apple says new software features that offer users with disabilities new tools for navigation, health and communication, are set to come out later this year.
Story image
Cybersecurity
Managed service providers: effective scoping to avoid costly vendor pitfalls
Managed security services are outsourced services focusing on the security and resilience of business networks.
Story image
WolfVision
WolfVision announces new range of visualisers
WolfVision has announced a new range of visualisers to help meet multiple industry demands for remote learning and educational solutions.
Story image
Gaming
PNY launches XLR8 Gaming EPIX memory products in A/NZ
PNY has launched its XLR8 Gaming EPIC-X RGB™ DDR4 Silver 3200MHz and 3600MHz memory products in Australia and New Zealand.
Story image
Telstra
Telstra and Silver Trak Digital delivers 5G to the cinemas
Telstra and Silver Trak Digital say they've launched Australia's fastest and most secure delivery of content over 5G for cinemas.
Story image
Application Performance Monitoring / APM
Why SolarWinds Partners will have big wins in 2022
We summarise the key recent changes that the monitoring software vendor has made to accelerate its channel business.
Story image
Microsoft
Microsoft unveils adaptive accessories for disability access
Microsoft is introducing an expansive Inclusive Tech Lab to give people with disabilities greater access to technology through new software features and adaptive accessories.
Story image
Application Security
What are the DDoS attack trend predictions for 2022?
Mitigation and recovery are vital to ensuring brand reputation remains solid in the face of a Distributed Denial of Service (DDoS) attack and that business growth and innovation can continue.
Story image
Manufacturing
HINDSITE wins Aerospace Xelerated Pitch Challenge with solution to support Boeing
Brisbane-based startup HINDSITE was the winner of the first ever Pitch Challenge organised by Aerospace Xelerated in partnership with Queensland XR Hub. 
Story image
Artificial Intelligence
Google to enter the smartwatch market with the Google Pixel Watch
Google has provided a first look at its new Google Pixel Watch, which is set to make an entry into the competitive smartwatch market.
Story image
Wireless
Hands-on review: Technics EAH-A800 Noise Cancelling Wireless Headphones
Designed in Osaka, Japan, these headphones just exude quality. They aren’t heavy, but they feel well built and solid.
Story image
Telstra
Telstra, Google and Accenture launch 5G AR experience for AFL
Telstra, Google and Accenture are developing a new 5G powered augmented reality (AR) experience at Melbourne's Marvel Stadium for the footy season.
Story image
Data solutions
South Australia state satellite makes significant progress
South Australia’s first state satellite has successfully completed the Critical Design Review (CDR), moving it closer to providing tangible data solutions.
Story image
Artificial Intelligence
ANU and Seeing Machines to use AI to improve driver safety
The Australian National University and Seeing Machines have won a grant to develop AI systems monitor human behaviour while driving.
Story image
Cybersecurity
Hard numbers: Why ambiguity in cybersecurity no longer adds up
As cybersecurity costs and risks continue to escalate, CEOs continue to struggle with what their investment in cyber protection buys. Getting rid of ambiguity becomes necessary.
Story image
Microsoft
SAS Viya on Microsoft Azure to deliver 204% return - study
The Forrester Total Economic Impact study finds SAS Viya on Microsoft Azure brings a 204% return on investment over three years.
Story image
Artificial Intelligence
SAS unveils AI experience to improve kids' batting abilities
SAS has created The Batting Lab, an interactive experience using AI, computer vision and IoT analytics to help kids improve their baseball and softball swings.
Story image
Mobility
Hands-on review: STM laptop bags
The advent of hybrid working has meant we need laptop bags. We got our hands on two of the most popular laptop bags from STM.
Story image
Cybersecurity
The 'A-B-C' of effective application security
Software applications have been a key tool for businesses for decades, but the way they are designed and operated has changed during the past few years.
Story image
Ransomware
Cybersecurity starts with education
In 2021, 80% of Australian organisations responding to the Sophos State of Ransomware study reported being hit by ransomware. 
Story image
Artificial Intelligence
Updates from Google Workspace set to ease hybrid working troubles
Google Workspace has announced a variety of new features which will utilise Google AI capabilities to help make hybrid working situations more efficient and effective.
Story image
Gaming
Mastercard users can now use rewards points in gaming
Mastercard has launched Mastercard Gamer Xchange (MGX), allowing APAC consumers to convert their rewards points into gaming currency.
Story image
Phishing
Google reveals new safety and security measures for users
Google's new measures include automatic two step verification, virtual cards and making it easier to remove contact information on Google Search results.
Story image
Hawaiki Cable
BW Digital completes acquisition of Hawaiki Submarine Cable
BW Digital has completed its full acquisition of Hawaiki Submarine Cable, with all applicable regulatory filings and approvals now received.
Story image
SAS
New SAS service overcomes subscription fatigue for media companies
SAS has launched SAS 360 Match which helps media companies move towards a AVOD model to generate revenue as subscribers cancel.
Story image
Fortinet
Fortinet's Security Fabric hits new record for integrations
The Fortinet Security Fabric has surpassed 500 technology integrations with more than 300 Fabric-Ready Technology Alliance Partners.
Story image
trust
9/10 Aussies to stop spending if personal data compromised
"Based on the patterns we are seeing among Australian consumers, it is evident that trust in a brand is exceptionally important."
Story image
Artificial Intelligence
SAS launches human-focused responsible innovation initiative
SAS has launched a responsible innovation initiative, furthering its commitment to equity and putting people first.
Story image
Fintech
Airwallex launches new bank feed integration with NetSuite
Airwallex has launched a new bank feed integration with NetSuite, developed in partnership with NetSuite solution partner, Onlineone.
Story image
Tech job moves
Tech job moves - Datacom, Micro Focus, SnapLogic and VMware
We round up all job appointments from May 6-12, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
Ransomware
Ingram Micro Cloud adds Bitdefender solutions to marketplace
Ingram Micro Cloud has announced the expanded availability of Bitdefender solutions on the Ingram Micro Cloud Marketplace.
Story image
Review
Hands-on review: MSI MPG Z690 Carbon WIFI motherboard
It’s all change with Intel’s 12th generation CPUs. We have a new chipset in the 600-series, a new socket with the LGA 1700, and new DDR5 memory.
Story image
Testing
Google and CSIRO use AI to help protect the Great Barrier Reef
Google has partnered with CSIRO in Australia to implement AI solutions that help protect the Great Barrier Reef.
Story image
Artificial Intelligence
AI-based email security platform Abnormal Security valued at $4B
"A new breed of cybersecurity solutions that leverage AI is required to change the game and stop the rising threat of sophisticated and targeted email attacks."
Story image
Adyen
Adyen expands partnership with Afterpay as BNPL payments increase
Adyen has expanded its partnership with AfterPay allowing more of Adyen’s merchants in more countries worldwide to use the BNPL provider.
Story image
Sift
Sift shares crucial advice for preventing serious ATO breaches
Are you or your business struggling with Account Takeover Fraud (ATO)? One of the latest ebooks from Sift can provide readers with the tools and expertise to help launch them into the new era of account security.
Story image
Remote Working
How zero trust and SD-WANs can support productive remote working
The way people connect with applications and data has changed, users are remotely accessing resources that could be stored anywhere from a corporate data center to the cloud.
Story image
Ransomware
A third of companies paying ransom don’t recover data - report
Veeam's report finds 76% of businesses who are victims of cyberattacks paid the ransom to recover data, but a third were still unable to get their information back.
Story image
SaaS
Atturra partners with Focus HQ to support Aus organisations
Atturra has executed a partnership agreement with Focus HQ, to resell and support the company's Australian developed SaaS-based portfolio management platform.
Story image
Wasabi Technologies
Wasabi opens new cloud storage in Australia with Equinix
Wasabi Technologies has opened a new hot cloud storage region in Sydney, Australia, using Equinix services. This is the company's 12th global storage region.