Banking of things (BoT) in New Era

Banking of things, the future ahead of things

The impact of the Internet of Things on the banking industry of the future is not hidden from anyone, but the development of the identity of Things , along with their constant connection to the Internet, can also be the beginning of the banking of things (BOT). As Things connected to the Internet will need to transfer money or manage costs and revenues, for example for energy consumption or sell their analysis and robotic work to other Things or human societies.

Here are the questions:

  • Can Things be bank customers independently?
  • And in this case, what are the needs of Things in the use of banks?
  • And how can banks or fintechs take advantage of this opportunity?

Let’s take a look at IoT applications in society and later in the banking world: from assisted machine language processing to machine learning, smart contracts, chatbots and voice-based banking, various sensors are helping to develop banking. But it seems that in order to make a difference in the digital age, we need to make changes in value creation by them, and I call this the new IoT, where in the new ecosystem, objects become more independent and need to transfer value through common currencies and financially they can also act independently.

Banking of things, the future ahead of things

In the new ecosystem, will these independent objects need to transfer money? And what special services will they receive from banks? Consider a simple example of the use of IoT in the banking industry to provide ATM services. Where that heading controls its spending and recharges its account, orders cash, and acts independently.

But a newer look could include adding components to the IoT ecosystem as a customer everywhere. In this case, you have to think about how these components will act if they enter into independent transactions. In the intermediary mode, things can be acted as intermediaries with access to the account of a real customer, but they themselves do not own a bank account or a direct party to any transaction.

But in the end, suppose a smart refrigerator is now connected to other home appliances as well as your phone via the Internet of Things, constantly informing you of your future needs and inventory, so why not think it can Order your needs from the nearest or best food distributor or shop to get it to you at the right time, and more importantly, why not be able to settle your account and financial management independently with the bank and bank account of things Give.

Why do they not have an independent financial identity and cannot get credit from the bank for purchases and good accounting? They may discount a portion of their electricity bills on every purchase from the store, or they may make money by selling limited data and analyzing your usage and interest in marketers.

Or consider a smart TV that analyzes your behavior and offers you the movie of your future, regardless of the limitations of an application such as Netflix, YouTube, etc., and controls the necessary budget based on your consumption, the best Informs you when to watch a movie, maybe download movies at low traffic hours and offer them for you to watch during the busy hours of the day, and most importantly, they will cover these costs from your family entertainment expenses or It pays its personal account with a bank independently and covers its expenses by receiving independent and personalized advertisements.

Banking of things, the future ahead of things

In this case, banks or fintechs will need to process and provide services to the accounts of things with a multiplier, and while recognizing the identity of things, banks must find a new way to attract things and improve Experience things in connecting to bank accounts.

 With these interpretations, it seems that this time banks will play a key role in the future of IoT and will be effective in its development and application in communities, as well as a new door to the use of the Internet of Things by connecting to banks and fintechs. In this regard, legislative gaps should be filled and new rules for banking of things should be written.

Author: Mohammad Ali Mirfallah Lialestani 

PhD student in Technology Management | Founding member of Tejarat Bank Digital Banking | Chairman of the Future Banking Working Group of the Iranian Forecasting Association | CEO of Innovation and Technology Development Consultants (

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 copyright All rights reserved : 20 Ocr 2020


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