Internet of things: financial perspective and its associated security concerns

Abstract

The internet of things (IoT) has expanded at a very rapid rate over the last decade and revolutionised much of internet and devices technologies. Though much of transformation was driven by IoT, however, its implementation, security issues and other associated aspects still remain a matter of concern. The literature on the financial aspect of IoT is very scarce and this paper aims to fill this void and provide financial perspectives on IoT. The analysis of IoT banking and financial services industry is projected to expand from $249.5 million to USD2.03 billion by 2023: eight-time rise or a compound annual growth rate (CAGR) of around 52%. Furthermore, it was noted that the financial results of selected IoT firms had seen decent development over the past many years. In addition, there are several mergers and acquisitions in the IoT market, culminating in USD75.44 billion increase in the sector. One of the major challenges in IoT implementation in the financial industry is security and privacy. The inherent vulnerabilities in IoT devices can be exploited by the attacker, which makes it increasingly onerous for financial services firms to safeguard the system against phishing, data breaches, ransomware and other attacks.