Fintech company Intelligent Environments has created a new banking platform that aims to help consumers reduce their spending habits by using IoT.
Called ‘Interact IoT’, the platform connects your bank account details to devices such as Google’s Nest thermostat and the Pavlok wristband, punishing you by turning down your heating or sending you an electric shock if you surpass your spending limit.
The company claims that 32 percent of people aged between 18 and 24 are worried about their spending habits and worry when it comes to looking at their bank accounts. This platform would control your spending.
Trust is crucial
While the idea seems novel and clever, it does rely on the trust of banks and bondholders, as it uses sensitive account details. But the firm says user data is kept protected by “bank-grade” security and is safe at all times.
This isn’t the first instance the company has used the Internet of Things in a bid to transform the finance and banking worlds. In 2014, it launched the world’s first ever emoji password and helped to create the first ever banking app for smartwatches.
At this stage, the platform is still in the early days, with the firm talking to a range of banks and credit card companies to bring it to the mass market. It hasn’t released a definitive timeline, but the talks are happening right now.
You might like to read: Is your bank ready for the Internet of Things?
In a statement, David Webber, managing director of Intelligent Environments, explained that current cashless payment methods are making consumers lose track of spending and that his company has found a solution.
“With cashless payment methods like contactless, Direct Debits, and Apple Pay, it’s unsurprising we lose track of spending, so we decided to solve this by enabling smart devices to manage our overspending for us,” he said.
“Both Pavlok and Nest Thermostat are opt-in services, so customers can decide whether to switch them on or not. However, with the Pavlok integration users have told us they love it. They think it’s much better to get a little shock now, instead of a nasty one later.”
IoT changing banking?
Max Speur, COO of banking tech firm SunTec, said IoT being used in the banking and payments industry cannot be underestimated and is letting bankers achieve a plethora of new, powerful capabilities.
He told Internet of Business: “The progression of the Internet of Things within the banking and payments industry can’t be underestimated. With machine-to-machine communication and tracking capabilities, banks can determine location and offer deals in accordance with partners nearby.
“This is also relevant for other industries who can make use of machine-to-machine communications, for instance the insurance industry.
“ Connected cars can send information to insurance companies in the event of an accident and by doing so the opportunity to cross sell other services and loans – to fix the car for instance – can manifest itself. This will improve customer experience thanks to the incentives and will provide more data which can then be used to improve their customer service.”
You might like to read: 100 million people to bank with wearables by 2020