Advancing payment processing with IoT
As with many industries, IoT is playing a huge part in the fintech market.
Whether it’s improving customer service, enhancing authentication and security or increasing operational efficiencies, IoT (internet of things) has the potential to drive significant change in the financial industry.
At , we believe there is plenty of scope for further fintech and IoT integration in the future. Specifically in relation to contactless payments, the rise of cellular connectivity and safer fintech deployments.
Move to a cashless society
As we continue to migrate day-to-day tasks to digital platforms, alternative payment methods to cash are becoming hugely important. Powered by contactless credit and debit cards or mobile devices, we will see society increasingly move away from physical cash, offering a higher level of convenience than traditional payment systems.
IoT is able to make payment processing faster, easier and more convenient for both customers and retailers. The coronavirus pandemic has only accelerated this change towards a cashless society, complemented by the growth of e-commerce and contactless payments.
This progression will continue as the world strives to define and adapt to the ‘new normal’, as it helps limit consumer exposure and promote social distancing measures during the pandemic.
Why cellular and not fixed line connectivity?
Payments are increasingly required in ‘pop-up’ or new locations, and often fixed-line connectivity isn’t always the best answer. Cellular connectivity over a private infrastructure offers lower costs and improved connectivity.
Within the fintech industry, vendors can also be confident in its high levels of data security, which is a vital requirement to their systems. Cellular connectivity solutions are able to leverage private network technology, such as certified VPNs and direct physical interconnects in data centres, to help layer security for devices, networks, and all data encompassed within.
Safe and smart deployments
Secure data processing and management is also increasingly important in the fintech industry. As more and more security devices become connected through IoT, encryption and vulnerability testing are crucial to ensure secure data transmission.
As with any IoT strategies, vendors need to install regular updates and firmware on network devices. Standards such as the ISO27001 are a minimum requirement for businesses in this space as they provide assurance around data processing and operational processes.
It’s also important for fintechs to invest in their people. Armed with the right tools and processes, properly trained staff can significantly reduce the risks to unprotected data and vendor reputations.
Singapore FinTech Association launches new networking club
The Singapore FinTech Association (SFA) has announced the launch of a new SG FinTech Club, which will act as hub that enhances networking among local fintech companies based in Singapore.
The APAC nation, which is a leading regional centre for fintechs, accounting for 13% of Singapore’s GDP in 2020. More than 1,400 fintech companies are based there, employing an estimated 10,000 people.
Technology is a driving factor within the space, and the SG FinTech Club will act as a base through which knowledge, resources and connections can be shared, as a way to increase the level of expertise in the space.
According to reports, the SFA will also develop and curate the engagement programmes for the fintech ecosystem. SG FinTech Club members will benefit from hospitality privileges offered by Supporting Partners , such as co-working spaces, which they can leverage on for social engagements.
The club’s existing membership platform will also enable users to sign up for talent matchmaking sessions, industry expert mentorship programmes, and masterclasses organised by SFA.
SG Fintech Club partnerships
The initiative has attracted the attention of several global fintech leaders, including the Institute of Banking and Finance (IBF). J.P. Morgan has also joined the club as Supporting Partner and Corporate Partner, respectively, to develop skills and career development events.
Speaking about the launch of the new club, Shadab Taiyabi, President of SFA, explained, “We are proud to collaborate with MAS on the launch of SG FinTech Club, and play our part in contributing to Singapore’s thriving FinTech ecosystem.
“We hope that the Club would be the key platform for inspiration and innovation, where professionals in the financial services sector can come to exchange opinions, network, and explore endless ideas with other like-minded individuals.
He continued, “Through the Club, we strive to champion and bolster Singapore’s FinTech entrepreneurship growth, facilitate the sharing of insights, collaborations, discussions and advocate the importance of upskilling amongst professionals across the financial services industry.”
Image credit: Singapore FinTech Association event