IoT Fintech- We are still only scraping the surface of what we have to learn and gain from the internet of things (IoT). Conversely, the IoT also has much to learn from other industries to make its vast task simpler. Collecting, processing, compressing, storing and retrieving data is an intrinsic part of the IoT, yet some industries, such as the financial technology (fintech) industry, have been in the business of carrying out those functions for years, even decades. I believe it is time for the IoT people to talk to and learn from the experience of those other industries.
Data Deluge For The IoT
Making the IoT work is not without its difficulties. After speaking with other IoT professionals, the general consensus is that the IoT is generating a lot more data than people expected it to back when they were putting the standards for it together. Base stations do not always cope with the load as well as they should, thanks to the deluge of information being thrown at them from a multitude of devices, whether they be within a smart home, a smart store or a smart city.
Signal collision and physical obstacles as seemingly simple as walls are leading to a need for more hardware. To fix this, more base stations are being installed to move signals cleanly through the network, driving both infrastructure and data processing costs. Meanwhile, each of those base stations is interconnected with every other one, all exchanging information back and forth, so the volume of data is multiplying far higher than the developers of the standards had bargained for — resulting in bandwidth jammed with surging packets of data.
All of these issues result in a never-ending need for more hardware, better software, higher licensing costs and, overall, a lot more money being spent to control the flood of data. Yet still IoT data processing solutions are not coping with the ever-increasing amount of data. So what can be done to help?
The data created by the IoT works in the same way that data in fintech has operated for years. Both industries’ types of data carry simple messages: a time stamp, an identifier and payload information. Therefore, for us in fintech, the nature of the IoT data package in terms of the size and type of the information being transmitted is very similar to what we are used to.