Interconnectivity and regulation
By Teamspirit on Sunday, 1 February 2015
The Internet of Things. For those who aren’t familiar with the concept, this is a term to refer to the fact that everyday objects are rapdily being turned into technology that can be connected to the internet. Your fridge, your heating and even your lighting could be controllable from your smartphone, thousands of miles away.
It sounds incredible, but it does come with an obvious risk - internet connections, by their very nature, go both ways, and sometimes it won’t just be you talking you your home full of internet-enabled objects. If someone gains access to these devices, illegitimately, they could cause a lot of problems. Giving internet trolls remote control of your lighting is a stressful concept.
Luckily, Federal Trade Commission Chairwoman Edith Ramirez has taken a stand on ensuring that privacy violations and general security are being addressed. "We believe that by adopting the best practices we’ve laid out, businesses will be better able to provide consumers the protections they want and allow the benefits of the Internet of Things to be fully realised," says Ramirez.
The benefit for fintech is that this technology will be regulated, and can then be recommended as a set of tools to both intermediaries and the public. It’ll be interesting to think about what impact remote home monitoring and control will have on financial services and how they interface with someone’s level of home security and management.
It’s hard to tell at this point how fast the Internet of Things will become the norm. It may continue as a niche interest for some time, but eventually, you may be able to check just how much milk is left in a fridge in London while you're sitting in an airport in Berlin, and that's something.