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Towards an “Internet of Things” Framework for
Financial Services Sector

Vemula Dineshreddy
1.SCIS, University of Hyderabad, Hyderabad, India
2. Institute for Development and Research in Banking Technology, Hyderabad, Telangana, India
dineshvemula@gmail.com

Abstract— The ability to apply state-of-the-art Internet of This paper presents a conceptual framework and design
Things (IoT) technology to extract customer insights through model leveraging the state-of-the-art IoT technologies for data
analytics by shaping the information into consumables for other processing and performing analytics in banking and financial
connected systems is creating a lot of opportunities for banking services sector. We analyzed this model considering a case
and financial services. This paper presents an architecture based study of investment management, which improved customer
on Internet of Things for banking and finance sector by satisfaction. We presented the deployment model with
managing, mobile, household devices, wearable sensors and other mappings of functional modules to the architectural view.
sensing devices for various applications including retail banking,
insurance, and investments. We have presented a case study of The remainder of this paper is organized as follows.
different banking applications flow with IoT-intelligence by Section 2 presents related work on using Internet of Things in
analyzing users' data. In addition, we have a mapping of the various sectors. Section 3 describes our proposed framework
proposed architecture onto the various applications of banks and that highlights the tasks performed at various layers. Section 4
financial services. presents a case study on IoT for investment management with
functional modules. Section 5 describes concluding remarks
Keywords—Internet of Things; big data; financial services; and challenges in implementing Internet of Things for financial
organizations.
I. INTRODUCTION
The Internet of Things (IoT) is a trending communication II. RELATED WORK
paradigm that embeds some intelligence in the objects of Nowadays, Internet of Things is applied for various
everyday life that are interconnected to communicate, transfer applications in various sectors. Nicola et. al [12] illustrated
messages, take decisions, make predictive actions and provide unified IoT communication framework requirements and
appropriate services [1]. IoT is applied for several applications focused mainly on communication requirements for health care
including healthcare, smart cities, agriculture, earthquake early applications such that they can be offered as a web service.
detection, smart homes, traffic congestion, waste management, Xiaojun et. al [4] presented on agricultural facility units using
smart grid, smart environment, and intelligent shopping. IoT in Beijing, enabling remote diagnosis, early warning,
The development of branchless banking services via command decision about the diseases and pests, intelligence
multiple communication channels has made it possible to control of water and tracing about facility agricultural products.
create a new kind of added value for customers, in the The concept of IoT is explained in technology and application
banking and financial service sector. With the growing use of perspectives with the use of IoT in agricultural production and
mobile phones, especially other wireless devices such as agricultural product supply system in [5]. Foschini et. al [6]
wearable and sensors, has made the IoT as a tool to improve investigated the design and implementation of an M2M
customer experience, a logical development in electronic application on top of currently available solutions for traffic
banking [2]. Potential applications of the IoT in these sectors management. The application of IoT in smart cities with
include insurance through telematics, life and health insurance, technical solutions and best-practice guidelines adopted in the
investment management and worker’s compensation in the Padova Smart City project are discussed in [7]. An architecture
commercial arena. IoT will definitely enhance the customer focusing on data acquisition and evaluation of unstructured
experience and enhance overall network infrastructure in data using different options like map-reduce is proposed in [8].
banks. However, IoT implementation becomes effective if and However, this architecture lacks features like sensing and data
only if the big data analytics and cloud accessibility are transfer of millions of heterogeneous devices.
integrated with the IoT structures. Although today, in banking and financial service sector,
online and mobile banking systems deliver reasonably high

IOT FRAMEWORK – FINANCIAL SERVICES COPYRIGHT GEOITHUB.COM

PROPOSED FRAMEWORK The main source of data is the device management layer at the bottom. accounts and balances. 1 shows the proposed framework for IoT based financial which must have direct (Ethernet or Wi-Fi) or indirect services system. With our proposed framework customers can connection (Zig Bee gateway. the customer satisfied and the quality of services could be made better by using Internet what actions can be of Things technologies. With connected things it is such as gathering data from sensing/edge devices. what are the critical things to be tracked to keep then funneled through a communication layer. 1. devices which support IPv6. etc. initial data aggregation. To the best of our knowledge. For efficient identification and change the way a customer to be treated based on spending security. These response to customers based on inbound requests. correlation. 2 quality services to consumers. The data from device management layer is in the past. IOT FRAMEWORK – FINANCIAL SERVICES COPYRIGHT GEOITHUB. This layer performs various functions income. events predicted from spending activity and dynamically filtering. mobile phone.COM . This layer consists of various types of IoT devices Fig. A.) to the internet. We can devices interact with an intelligent gateway to perform the Fig. low power radios be provided targeted offers based on a statistical study of etc. no framework using IoT and analytics for banks and financial organizations today. Device Management Layer III. short-range wireless behavior and financial impact. there is performed using this data. IoT based framework for financial service sector create targeted offers based on anticipated life and financial authentication and authorization [9]. long-range communication and Geo-networking information can be tracked by the banks that was not available are recommended. This framework explores what technology. connection possible to act on point or individual events and provide of devices and transmission of data at regular intervals.

2. E. Most importantly.3. The dataset is analyzed to extract knowledge and patterns to make informed decisions. it provides scalability. Integration Layer enable developers to build smart applications and tools using This layer performs integration of structured and unstructured IoT services. and enhance processing environments with the ability to capture all of the operational efficiencies through innovations. Event Processing and Analytics Layer This layer performs the functions of the networking and This layer handles the streaming events coming through and transport layers of traditional internet architecture. This layer supports dynamic routing according to the changing network conditions. This layer performs integration environment to a data warehouse for advanced data encryption.1. us with the infrastructure as a service. data types and domains. It provides services for different applications to communicate IOT FRAMEWORK – FINANCIAL SERVICES COPYRIGHT GEOITHUB. This structure offers ‘in-place’ analytics. This layer act as a middleware which provides data. Constrained reduces the burden of moving the data to another analytical Application Protocol (CoAP) and MQTT. Flow representation of different bank applications with IOT-intelligence B. on behalf of the customer using predictive analytics. 3 Fig. This layer helps banks to analyze the data. This infrastructure is This layer fills the gap between traditional and present used to empower new income streams. resolves the data formats of different vendors and protocols The Business Intelligence module is equipped with querying and provides an effective logical addressing with greater and reporting tools. The well analytics. which enables data warehouse and analytic architecture. Another important action performed by this layer environment. and acts parameters to fitting QoS policies. Communication Layer D. speed and value. takes is changing over client characterized system execution decisions based on reduction-results and user actions. The "reductions-results" are loaded from detail to operate with IoT applications. This layer act as an interface between user applications and lower modules. This layer performs analytics with data being integrated.COM . This layer includes a developer suite to C. Application Layer The application layer acts as an interface between the developed applications and underlying infrastructure. filtering and interference avoidance. which known potential protocols are HTTP/ HTTPS.

analysis framework. health care devices etc. manage customer accounts and offer on such as wearable. mapped to the physical devices management layer of the Data processing involves the collection.COM . CASE STUDY runs the local services to continuously monitor the devices and sends data to the database (sometimes in cloud) using data IOT FOR INVESTMENT MANAGEMENT services. financial status. By accessing the data of customers' daily lives. These services utilizes the service oriented We consider a system for investment management that must interactions to operate with cloud if needed. integration. etc. this and also to the access management layer for security reason. The devices decisions to create. mobiles. purchasing. The controller services plays the role of and complex workflows depending on external conditions or communication layer in the architecture. modules of IOT based investment management systems. Fig. expenditures) and takes modules to the layers of the proposed framework. The controller services shown in the figure IV. and collateral value. 3 we have presented the mappings of functional or in batches (financial statements. the presence/absence of other relevant data that needed to be databases and data services are mapped to the integration layer processed. driving behavior. trades. 2 shows the functional about performance parameters to the underlying layers. process data from heterogeneous devices received either by streaming (sensors. sensors in homes and cars etc are the fly offers and rewards in case retail banking and loans. Interactions. The application layer sends information Fig. 3. Mapping of functional modules to layers of the framework IOT FRAMEWORK – FINANCIAL SERVICES COPYRIGHT GEOITHUB. mobiles. location and other activities using the sensor devices placed in wearable. telematics or data from wearable) In Fig. 4 with the shared protocols and interface methods. taking loans and insurance layer. It Various protocols are developed and used to exchange data consist of various devices for monitoring customer's between versatile. while automating intelligence are mapped to event processing and analytics the process of opening an account. system enables banks to better understand the customer's All the actions like processing data and applying IOT needs.

S. Duan. March 2010. and S." aware of their financial position to avoid risk. This system follows In: Proceedings of the 10th International Conference on Frontiers of the same in case of opening an account. Zanella.internet-of-things-research. "Vision and IOT FOR RISK-AWARE SHOPPING WITH CUSTOMER challenges for realising the internet of things". "Application mode construction of internet of things for facility agriculture in Beijing. and S. it needs to be remodeled to simplify the complex systems and to IOT FRAMEWORK – FINANCIAL SERVICES COPYRIGHT GEOITHUB. possible applications and key challenges. Khan. and I. framework with heterogeneous objects interacting with the [10] E." In Proceedings of the up reasoning about design guidelines and exploring the 19th International Conference on Software. Munar. customer specific products and offers based on customer's 385-388. Khan. Sposato." Transactions of what they want. Vol. S. Mahalle. 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