Global chipmaker Qualcomm and South Korean telco KT announced on Friday a joint business project to develop a "LTE based Internet of Things (IoT) security gateway solution" for new ATMs.
Their IoT gateway solution will combine KT's expertise in IoT security with the design know-how underpinning Qualcomm's LTE microchips. This joint business ATM project is one of the biggest since the two companies inked an agreement in January to jointly develop equipment with secure gateways to the Internet of Things.
"We plan to develop this sustainable security solution in order to provide reliable IoT services with excellent security, as well as network and control technology," said Yoon Kyoung-rim, a managing director of Korea Telecom's Future Business Promotion Office, during a press event at KT's headquarters in Seoul.
While forecasts by tech analysts vary wildly on the added economic value of IoT -- anywhere from $300 billion to $9 trillion over the next five years -- it is safe to say that financial institutions will likely be very active participants in this transformation.
Although just 25 percent of smart sensors deployed in devices in 2013 could be of use in the financial sector, the percentage of financial sector related sensors is projected to be about 50 percent by 2020, according to an analysis by professional services network Deloitte.
Cybersecurity takes on a whole new dimension with the explosion of smart devices and sensors, not just for institutions, but also for consumers. With more digital connections and information being transmitted, digital vulnerabilities are likely to expand exponentially.
For its part, Korea Telecom said that the company is well aware that financial transactions of the future depend on the security of wireless communications -- of course, that means LTE and WCDMA -- but they must also include other wireless networks, such as Bluetooth and Zigbee. The LTE based security gateway can also be deployed into IoT support services.
"We intend to provide support to a variety of new IoT services through our collaboration with Korea Telecom and we will do our best to foster synergy in the IoT sector with KT," said Lee Te-won, vice president and general manager of Qualcomm Korea.
Compared with a wired connection, the IoT gateway solution could reduce ATM maintenance costs by as much as 50 percent, Korea Telecom said, with the current wired-connected terminals also being difficult to install in some areas.
Qualcomm and Korea Telecom said the LTE based IoT security technology will serve as the foundation for many applications for the IoT technology. Along with Korea Electronic Financials, which installs and services ATMs, over 1 million "smart" terminals will be deployed in South Korea over the next three years.