The Wuxi IoT Research Institute is located at the Wuxi (National) Software Park. [Photo/qunzh.com]

China's proposal to set standards for an Internet of Things financial service system that supervises the pledge of movable property was officially approved by the ISO technical committee this week. Once fulfilled, it will become the world's first IoT standards to be applied in the finance sector.

The Wuxi IoT Research Institute, the Wuxi IoT Finance Research Institute, and the China Electronics Standardization Institute collaborated in delivering the proposal.

The former two institutes, based in Wuxi city, Jiangsu province, will now be organizing an international team to turn the proposal into a reality. The China-led team will also include experts from Korea, Russia, Japan, and Malaysia.

Liu Haitao (second from left), director of the Wuxi IoT Research Institute, demonstrates technological concepts to his team. [Photo provided to chinadaily.com.cn]

As early as eight years ago, Liu Haitao, director of the Wuxi IoT Research Institute, and his colleagues had started exploring ways in which to integrate IoT and finance. It was the world's first attempt in this regard. The official approval from the ISO technical committee this time implied a worldwide recognition of their idea of "IoT Finance".

"Finance is an important pillar and a necessary condition for a nation to become a strong power in the world. China has a large finance sector, but it is not yet a top player in the finance arena," said Liu.

At present, the credit system in China, which is of vital importance to the finance sector, still requires further improvement. The IoT's widespread application is expected to help solve such problems and contribute towards China's transformation from a large nation to a strong nation in the finance arena, Liu added.