Smart Cities and Smart Banking
Smart city innovation is driven by clean energy and sustainability, but also the theme of connectivity. The more connected people are through the internet, the more they will be able to connect and interact with many other city nodes.
Unsurprisingly, startups are using the smart phone as a way to cultivate that relationship between the people and the city around them. Hossein Mohammadpour Zarandi, president of Iran’s Urban Economics Scientific Association, spoke yesterday about the importance of smart phones when developing smart cities:
660 million people owned smart cell phones; this figure shows an upsurge from 140 million people 2008–2012 worldwide; therefore, it seems that smart phone is the main tool of smart city.
He went on to speak about how the future of financial management will play a huge part in how smart cities function in the long term:
One of the applications of mobile phones in smart city is to improve banking system and transactions with citizens. Digital technologies allow banks to redefine their relations with their clients and to communicate them in a new way based on data and information.
Efficiency is key when considering the operations of smart cities. Efficiency in energy, transportation, and internet speed all raise quality of life standards. The banking system is no different; banks and startups are revolutionizing the expediency of transactions. Whether you are paying a friend through Venmo or instantly cashing a check by taking a picture of it on your smart phone, these products offer a peak into how people will live in smart cities.
The newest endeavor to hit the market comes from Visa — a payment ring designed specifically for the Rio Olympics. This ring allows athletes and fans to make payments by tapping a ring against a sensor, and eliminates all need for anyone to carry wallets, cards or other money that would be inconvenient.
As the exclusive payment provider of the Olympic Games, Visa is creating and managing the entire payment system infrastructure and network throughout all venues including stadiums, press centers, point-of-sale (POS), the Olympic Village and Olympic Superstores. In Rio, Visa will implement approximately 4,000 NFC-enabled POS terminals capable of accepting mobile and wearable payments across key Olympic venues, the US Olympic Committee’s USA House and Copacabana Megastore.
Like all emerging technologies, this device is being tested and will surely improve after more customer feedback. But it shows how technology could one day provide the financial technology infrastructure for an organization, neighborhood, or city.
