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IOT in Finance and Accounting
Abstract
Research was conducted to aid the profound impact
of IoTfocusing on its application, benefits and
implications in the field of finance and accounting.
IoT technology, with its network of devices and
sensors is revolutionizing how financial institutions
operate, engage with its customers and how it ensures
security.
This research serves as a comprehensive exploration
of IoT'svital role in finance and accounting, offering
insights that can guide financial institutions in
utilizing the full potential of IoTtechnologies to better
serve their customers and to survive in a rapidly
changing ecosystem.h
Introduction
Internet of things refers the interconnection between
devices with respect to internet including mechanical
and digital objects.The Internet of Things (IoT) is
based on network of devices capable of interacting
and communicating with each other.
With the help of this technology, financial services
such as banks and NBFC’s are increasingly
introducing automation and artificial intelligence
(AI) into their everyday working, thus providing a
better customer experience. IoT allow financial
institutions to streamline their operations and
increase efficiency while providing a better customer
experience.
In addition to these features, it can be attractive for a
financial institution to recognize its customer’s better
and offer personal loan and deposit interest rates or
reward points.
In the field of accounting and auditing, the use of IoT
ensures time efficiency and accurate information
flow, particularly in auditing and inventory
management. As the information is collected
continuously, the auditor is always informed about
the operations of the company. Inventory items will
be self-managing objects with intelligent internet
systems.
Bhumika, Smridhi, Seba, Ashna, Vasundhara
MBA Finance Student
Amity University, Uttar Pradesh (AUUP)
Methodology
In this preliminary research, a descriptive research approach has
been followed. Since the research question is “what are the areas
of use for loT in accounting and finance?”, a qualitative approach
has been used to interpret the secondary data on the research
subject. Between researches, there is an ongoing argument on the
value of quantitative vs. qualitative research design, and certain
remarks have targeted descriptive research as being less pure than
traditional experimental, quantitative designs (AECT, 2001).
The Indian banking has been evolving in the recent years like with
the introduction of passbook printing kiosk ,where customers can
print their passbook on their own. As loT devices are becoming
more prevalent in mobile devices, wearable technologies and other
forms, the financial services industry has the opportunity to
gather actionable, business-relevant data (when complying with
regulations and privacy policies) (IJM Article ID: 11_06-49)
Uses of loT in Banking may provide the attributes and an example
of their meduim..(Digiteum, 2019)
Wealth management personalization- Demat account
Improved payment security- Tokenization
Transaction automation - ATMs, Payment gateaways
Improved transparency-Passbook kiosk
Optimized capacity management
Voice assistants
The concept called the internet of things (IoT) refers to tangible
assets which are connected to the internet and can communicate
with each other. The devices transfer information across networks
in real time. Accounting is increasingly influenced by the loT
technology..IoT provides abundant amount of new data. By the end
of 2018, it is predicted that 20 billion devices are connected globally
(Newman, 2018). However, reliability of internet data is a
challenge. It is crucial to differentiate the correct data among the
many, when it comes to use them in decision making. Another
challenge is to create new accounting models which can incorporate
information coming from sensors of billions of devices.
Inventory Management -IIoT
Data for Business Models
Asset Management
Billing Services
Auditing- Aura and clara
Budgeting
Providing Advice to Clients
1. We would like to express our gratitude to the
2. We appreciate the support and guidance of our
3. Lastly, we acknowledge the encouragement and support
Results
Preliminary research utilizes a descriptive,
qualitative approach to explore the applications of
IoT in accounting and finance.
Some debates surround the merits of quantitative
versus qualitative research designs.
The Indian banking sector has witnessed
advancements, like passbook printing kiosks,
indicating a trend towards technology integration.
Specific applications of IoT in banking include
wealth management personalization (SaaS and AI),
improved payment security through tokenization,
transaction automation via ATMs, enhanced
transparency with mobile banking, and optimized
capacity management.
Voice assistants are emerging as a valuable tool
within this context.
Challenges arise in ensuring the reliability of
internet-derived data and in developing accounting
models capable of assimilating information from
billions of sensors.
IoT has applications in inventory management
(IIoT), data for business models, asset
management, billing services, auditing, and
providing advice to clients.
Conclusion
Future - IOT is the driving force of the banking
sector through interoperability, enhanced
security measures, predictive maintenance, IOT
connectivity, the implementation of a 5G
networks and adoptions of edge computing.The
IOT in , banking and financial services market
has witnessed remarkable growth in recent years,
with a projected value of USD 30925 million by
2030, growing at a CAGR OF 50.10% from 2023
to 2030 as per verified market research.
Challenges-
1. Data privacy and security
2. lack of standards
3. Data management
4. Potential vurnebilities
5. Security risks
Acknowledgements
participants .
mentors and advisors throughout this research project.
from our families and colleagues during the course of
this study.