IoT in Banking and Financial Service Market Size, Share, Growth and Global Industry Analysis by Type (Hardware, Software, And, Service) By Application (Banks, Insurance Companies, Mortgage Companies, Brokerage Firms, And, Others), Regional Insights, and Forecast From 2024 To 2031

Updated On: 01 April 2024

IOT IN BANKING AND FINANCIAL SERVICE MARKET REPORT OVERVIEW

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The global IoT in banking and financial service market size was USD 911.8 million in 2022 and is projected to touch USD 15037.35 million by 2031 with a CAGR of 30.4% during the forecast period. 

IoT is the abbreviated form of Internet of Things. It is mainly used to allow the internet connectivity into physical objects and other items. Internet of Things can be used in many fields such as healthcare, home security, home décor and banking. One of the best examples of IoT in retail banking is the ATM machine. The introduction of ATM machines has made the process of banking very efficient.

The usage of Pragmatic IoT and Embedded Scenario-Specific Banking has been the one of the latest trends in the market. Security and fraud detection with the help of IoT and improved analytics and customer service are some of the major factors that are driving the market growth.

COVID-19 impact: Lockdown Restrictions and Digitalization Increased the Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden spike in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

The COVID-19 pandemic affected various economies all over the world. Lockdowns and strict norms that were imposed during the pandemic period restricted the public from going out of their homes. This caused a lot of inconvenience, as people were not able to get their work done. However, the rapid digitalization of everything globally changed the scenario.

People started shifting their focus on online platforms where they could get things done easily from the comfort of their home. This rapidly created an opportunity for digitalization.  Healthcare, education and banking were some major industries that became more digitalized. According to a report by EY there has been a 72% increase in the use of fintech and IoT in banking during the pandemic. This has led to the growth of the IoT in banking and financial service market share.

LATEST TRENDS

"Pragmatic IoT and Embedded Scenario-Specific Banking to Boost the Market Growth"

There have been many advancements and developments in the field of IoT in banking and financial service market. Due to the rapid digitalization and globalization that the world has witnessed in the recent years, IoT in banking and financial services has become very popular. This includes several technologies that range from telecom operators to the sensors of microchips.

According to the GlobalData, pragmatic IoT has been one of the latest trends in the industry. Many reputed financial institutions are focusing on providing value with the help of real-time analytics. Autonomous finance or closed loop IoT are very helpful in making big cost savings and also focus on reducing the manual errors. Another such advancement that is noticeable is the embedded and scenario specific banking that enables the banks to better reach the customers.

IOT IN BANKING AND FINANCIAL SERVICE MARKET SEGMENTATION

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• By Type Analysis:

The market is divided on the basis of type as follows: Hardware, software, and, service. Hardware segment is predicted to dominate the market during the forecast period.

• By Application Analysis:

Classification based on application is as follows: Banks, insurance companies, mortgage companies, brokerage firms, and, others. The banks segment will dominate the market growth in the forthcoming years.

DRIVING FACTORS

"Security And Fraud Detection with The Help of IoT to Amplify Market Growth"

Use of IoT in banking and financial service has many advantages. The implementation of advanced technology in banking and financial services has increased the efficiency and effectiveness of the operations. With increased efficiency, there has also been an increase in the security.

Banks and financial institutions can improve their security system with the use of CCTV camera, smart alarm systems, round-the-clock monitoring and other security-focused technologies which are all completely based on Internet of Things. In the same way the frauds are also being detected were easily with constant authentication and monitoring. This has been one of the major factors driving the IoT in banking and financial service market growth.

"Improved Analytics and Customer Service to Increase the Market Development"

IoT has the capacity to provide the banks with apt and latest information regarding the various businesses or clients they are investing on. Apart from this, the implementation of IoT in banking and financial services will help in accurately measuring the ROI.

Data can be leveraged from various sources and applications about consumer loans and their spending history. To conveniently view the trading activities data could be leveraged from analytical platforms. IoT also provides help in managing personalized money that improves the customer service.

RESTRAINING FACTOR

"Overload Of Information and Privacy Concerns to Reduce Market Growth"

IoT in banking and financial service is completely dependent on the huge amount of data-base and information. Due to the requirement of huge amount of data there can sometimes be an overload of information which might lead to other problems such as wrong interpretation of the given data. This might create many serious issues.

Another disadvantage is the privacy concern of the consumers. Sometimes very confidential information about the customers and clients are at the risk of being leaked and exposed. These have been the major factors restraining the growth of the market.

IOT IN BANKING AND FINANCIAL SERVICE MARKET REGIONAL INSIGHTS

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"North America Anticipated to Dominate the Market During the Forecast Period"

The region that is anticipated to dominate the IoT in banking and financial service is North America covering the maximum share of revenue. The area that occupies the next position is Asia Pacific. There are several reasons which contribute to the development of the market in North America.  The most important reason being the presence of many important and major banks such as JPMorgan Chase, Citigroup Inc, and the Bank of America. There has also been an increasing adoption of core communication technologies in North America. The partnership between the banking sectors and the local players has also contributed to the market growth here.

Key Industry Players

"Market Players Focus on New Product Launches to Strengthen Market Position"

Leading players in the market are adopting various strategies to expand their presence in the market. These include R&D investments and launch of new, technologically-advanced products in the market. Some companies are also adopting strategies such as partnerships, mergers, and acquisitions to strengthen their market position.   

List of Market Players Profiled

• Microsoft (U.S.)
• IBM (U.S.)
• Oracle (U.S.)
• SAP (Germany)
• Cisco Systems (U.S.)
• Accenture (Ireland)
• Infosys (India)
• Vodafone Group (U.K.)

Report Coverage

The report provides an insight into the market of from both the demand and supply sides. Further, it also provides information on the impact of COVID-19 on the market, the driving and the restraining factors along with the regional insights. Many other important factors such as the latest trends and the key industry players are also given. Market dynamic forces during the forecast period have also been discussed for the better understanding of the cable railing market. An analysis of the market’s growth has also been covered.