This banking platform is using wearables delivering electric shocks to stop people going over their spending limit
A new banking platform promises to reduce overspending among millennials, by using the "Internet of Things" to break bad spending habits.
The platform – called "Interact IoT" – was devised by FinTech company Intelligent Environments and connects individuals’ bank details with smart devices such as Nest and Pavlok. Go beyond your spending limit, and your heating will automatically be turned down – or worse, you will receive an electric shock.
According to Intelligent Environments, 32 per cent of 18-24 year olds are afraid to look at their bank accounts, and the idea is that by using the IoT platform, they will never have to look at their bank balances again.
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Of course, this plan relies on a huge amount of trust, and Intelligent Environments has reassured users that their private details will be protected by “bank-grade” security.
“With cashless payments like contactless, direct debits, and Apple Pay, it’s unsurprising we lose track of spending, so we decided to solve this by enabling smart devices to manage our overspending for us. This means customers can now get complete control and oversight of their finances without having to lift a finger,” said David Webber, Managing Director at Intelligent Environments.
“Both Pavlok and Nest Thermostat are opt-in services so consumers can decide whether to switch them on or not. However, with the Pavlok integration users have told us they love it. They think it’s much better to get a little shock now, instead of a nasty one later.”
The platform ties into the recent trends of retail-friendly FinTech and wearable technology. Last year, Gartner placed the Internet of Things at the "Peak of Inflated Expectations" on its infamous Hype Cycle chart.
And this is not the first time that Intelligent Environments has reached for the zeitgeist. In June 2015, the firm launched the first ever Emoji Password, and it helped create the world’s first smartwatch banking app back in 2013.
The firm is currently in talks with banks and credit card companies and is hopeful that the platform will soon be available to the general public.