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What is the Internet of Things?

To some degree, you’ve already been exposed to the Internet of Things (IoT) and what it can do.

In modern cars, for example, we can lock, track or start our engines without being there. What makes something an IoT device is its connection to an internet signal. Wireless and remote technology aren’t exactly the same as IoT technology. The wireless ability of the Internet of Things is specifically powered by the web.

Though an antenna could be used to achieve the same wireless features in some cases, society gains a larger range of mobility through an internet connection.

Can IoT Improve My Finances?

The Internet of Things can improve how financial decisions are made. Our wireless technologies are evolving fast, and the current demands of our data society has led to a few promises in how financial services will be provided. The core takeaway, as it relates to both finances and IoT, is the ability to collect data in a way that we never could before.

A Better Perspective on Your Finances

Due to interconnectivity, financial institutions can now collect more data about you. You, as well as the financial apps you have, are also empowered, for you’ll get access to insights that you couldn’t otherwise have. By the time that you equate artificial intelligence into this mix, it becomes clear. We’re only scratching the surface. Even today, the average person is twice as smart, due to mobile devices, than they were 15 years ago.

Your finances stand to gain this type of boost.

Here’s a look at what IoT data does and how it guides us into better finances:

Better Decision Making

IoT has the potential to lead us to better decision making about or personal finance due to having more data about our spending habits. Currently, a lot of that data is obtained from credit card summaries, expense control applications, or home/mobile banking. This is due to change as more of the devices that surround us continue to implement IoT technology and collect objective data about our daily lives.  The collection of this data combined with the use of other technology such as machine learning or artificial intelligence can help drive more data-driven decision making when it comes to our finances.

Better Customer Service

The data obtained from IoT also allows customer service to better tackle customer concerns. Consumer expectations are rising all of the time, which means companies need to make sure they have an edge in order to properly service their user-base. Artificial intelligence technology can take the data obtained from IoT and use it to make sure customer service bots are able to come up with better solutions for customer issues, both in finance and in other fields. 

Less Chance For Financial Risks

IoT also has the ability to lower our chances of financial risk, which can lead to better loan options and building better credit. The personal finance data provided by IoT will allow banks to better determine which offerings are best for each customer, and the factors that determine credit score could be overhauled. Creditors will also be able to partner with manufacturers in order to make proactive credit offers to individuals if items they purchased begin to show noticeable wear, as well as those in the property business being able to more accurately bill tenants for their use of amenities or in the case of damages.

This blog/website is only made available for educational purposes. It is designed to give visitors general information and a general understanding of select financial topics. It is not intended to provide specific financial or investment advice. Conduct your own due diligence or consult a licensed financial advisor/broker before making any and all financial/investment decisions.