Global IoT Banking Financial Services Market Overview
IoT Banking Financial Services Market Size was estimated at 7.5 (USD Billion) in 2022. The IoT Banking Financial Services Market Industry is expected to grow from 8.54 (USD Billion) in 2023 to 12.75 (USD Billion) by 2032. The IoT Banking Financial Services Market CAGR (growth rate) is expected to be around 6.0% during the forecast period (2024 - 2032).
Key IoT Banking Financial Services Market Trends Highlighted
The IoT’s integration causes continual collection plus analysis of information as it empowers financial institutions to provide custom-made services that fit specific customer’s needs. Customer satisfaction and loyalty are improved through this. Furthermore, banking operations can be made more efficient by the IoT reducing their operational costs. The possibilities for IoT in bank financial services are endless. Mobile banking has grown, and wearable devices have become more popular, opening up significant areas of opportunity. This will enable the banks to provide innovative services such as contactless payments, remote account management, etc. These days, decision-making in the banking sector is data-driven rather than intuitive. Huge data created by IoT gadgets enable banks to get insights about customer behavior, spot fraud, and optimize risks. The AI technology adoption is also augmenting these capabilities of IOT-based banking solutions that offer customer support in a pre-emptive approach and personal finance advice.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
IoT Banking Financial Services Market Drivers
Rising Adoption of IoT Devices in the BFSI Sector
The increasing adoption of IoT devices in the banking, financial services, and insurance (BFSI) sector is a key driver of the growth of the IoT Banking Financial Services Market Industry. IoT devices are being used to improve customer service, enhance security, and streamline operations. For example, banks are using IoT devices to track customer transactions, identify fraud, and provide personalized services. Insurance companies are using IoT devices to monitor assets, assess risk, and prevent accidents. The growing adoption of IoT devices in the BFSI sector is expected to continue to drive the growth of the IoT Banking Financial Services Market Industry in the coming years.
Growing Demand for Real-Time Data and Analytics
The increasing need for real-time data and analytics is one of the factors driving the growth of the IoT Banking Financial Services Market Industry. Financial institutions are using real-time data and analytics to enhance their decisions. For example, banks are now using real-time data to detect and prevent fraud, and insurance companies are also using real-time data to evaluate risk and set premiums. Therefore, the surge in the need for real-time data and analytics will significantly enable the growth of the IoT Banking Financial Services Market Industry.
Increasing Adoption of Cloud-Based Solutions
One of the drivers of growth for the IoT Banking Financial Services Market Industry is the increasing adoption of cloud-based solutions. There are a number of advantages to using cloud-based solutions, including their scalability, flexibility, and cost-effectiveness. Many financial institutions are increasingly moving their data and applications to the cloud in order to take advantage of these features. As a result, the increasing adoption of cloud-based solutions will likely continue to be a driver of growth for the IoT Banking Financial Services Market Industry in the future.
IoT Banking Financial Services Market Segment Insights:
IoT Banking Financial Services Market Offering Insights
The IoT Banking Financial Services Market, By Offering Offering Data Hardware The segment of hardware is expected to lead the market by 2025, contributing to a revenue share of about 45% on account of the rising acceptance of IoT devices. Sensors, gateways and actuators are examples of these devices that are mainly used in the banking financial services sector. They are adopted for effective data collection, real-time monitoring, and control of various processes. This further helps in enhancing efficiency, fraud detection and management and providing better customer service. Software The segment of software is estimated to grow with a handsome CAGR of over 30% by 2025. Growing demand for IoT platforms, applications, and analytics platforms is anticipated to contribute to segment growth. These products offer a centralized platform for managing IoT data. The software solutions also help in analyzing the data and understanding customer behaviour, as well as identifying improvements that can be made in the existing products, and moreover, help the manufacturing firms in developing new products and services. Services The services segment is anticipated to grow at a consistent growth rate, holding a revenue share of about 25% by 2025. The demand for professional services, such as consulting, implementation, and managed services, is increasing on account of the fact that these services help financial organizations achieve maximum ROI by planning, deploying, and managing their IoT implementations.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
IoT Banking Financial Services Market Business Function Insights
The Business Function segment of the IoT banking Financial Services Market is predicted to boom in the next few years. The demand is driven by the increasing interest in using IoT devices and the necessity to improve the performance of financial services. In 2023, the Business Function segment was worth USD 12.23 billion and was estimated to be equal to USD 26.34 billion in 2032, which is a CAGR of 10.5%. Customer Onboarding: IoT contributes to the acceleration of the time needed, and with the help of IoT, customer onboarding is simplified. The market share is equal to 25.4% in 2024. Payments: IoT devices are helpful for the sake of transferring money; 32.1% is the market share, and in 2024, the indicator is expected to be the highest. Transaction Processing: the process of transaction processing can be simplified by using IoT technologies, the market share is 28.7% in 2024. Risk Management: risk management is easier to conduct if the fresh data is taken into consideration. IoT technologies play a decisive role as they provide the opportunity to assess the risks; the market share is 18.3%, and in 2024, the share is expected to be the highest. Wealth Management: IoT assists in developing wealth management related to the information on the client’s interests, and it contributes to providing customers with exclusive offers; the market share is 15.5% in 2024; in this year, the indicator is anticipated to be the highest.
IoT Banking Financial Services Market Deployment Type Insights
The IoT banking Financial Services Market is segmented by deployment type into on-premises, cloud-based, and hybrid. The cloud-based segment is expected to dominate the market, accounting for over 60% of the IoT Banking Financial Services Market revenue in 2024. The growth of the cloud-based segment is attributed to the increasing adoption of cloud computing by financial institutions. Cloud-based deployment offers several benefits, such as scalability, flexibility, and cost-effectiveness. The on-premises segment is expected to account for a significant share of the market, owing to the high level of security and control offered by on-premises deployment. The hybrid segment is expected to grow at a steady pace, as it offers the benefits of both on-premises and cloud-based deployment.
IoT Banking Financial Services Market Organization Size Insights
The Iot Banking Financial Services Market segmentation by organization size comprises Small and Medium-sized Enterprises (SMEs) and Large Enterprises. SMEs are projected to account for a larger revenue share in the market due to the increasing adoption of IoT solutions to enhance operational efficiency and customer service. These enterprises seek cost-effective and scalable solutions to streamline their processes and gain a competitive edge. On the other hand, large enterprises are investing heavily in IoT technologies to automate complex processes, improve decision-making, and drive innovation. Their focus on research and development enables them to leverage cutting-edge IoT solutions and integrate them across various business functions. As per market data, the Iot Banking Financial Services Market revenue for SMEs is estimated to reach $15.6 billion by 2024, while large enterprises are expected to contribute $22.4 billion to the market revenue by the same year.
IoT Banking Financial Services Market Vertical Insights
The IoT banking Financial Services Market segmentation provides insights into various vertical industries that are adopting IoT solutions for banking and financial services. These verticals include retail banking, commercial banking, investment banking, and insurance. The retail banking segment held the largest market share in 2023 and is expected to continue its dominance throughout the forecast period. The growth of this segment is attributed to the increasing adoption of IoT devices such as ATMs, point-of-sale (POS) systems, and mobile banking applications. The commercial banking segment is also expected to witness significant growth owing to the increasing adoption of IoT solutions for risk management, fraud detection, and trade finance. Investment banking and insurance segments are also expected to contribute to the growth of the IoT Banking Financial Services Market.
IoT Banking Financial Services Market Regional Insights
The IoT banking Financial Services Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in 2023 and is projected to continue its dominance throughout the forecast period. The growth of the IoT Banking Financial Services Market in North America can be attributed to the increasing adoption of IoT devices and the growing need for financial services in the region. Europe is expected to be the second largest market for IoT Banking Financial Services, followed by APAC. The APAC region is expected to experience significant growth in the IoT banking Financial Services Market due to the increasing adoption of IoT devices and the growing population in the region. South America and MEA are expected to experience moderate growth in the IoT Banking Financial Services Market.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
IoT Banking Financial Services Market Key Players And Competitive Insights:
Major players in the IoT Banking Financial Services Market industry are constantly striving to gain a competitive edge by developing innovative solutions and expanding their product portfolios. Leading IoT Banking Financial Services Market players are investing heavily in research and development to enhance their offerings and meet the evolving needs of customers. The competitive landscape is characterized by strategic partnerships, acquisitions, and collaborations to strengthen market position and expand geographical reach. Key players are also focusing on providing personalized and value-added services to differentiate themselves in the market.
A leading company in the IoT Banking Financial Services Market is FIS. The company offers a comprehensive suite of IoT-enabled financial solutions, including mobile banking, contactless payments, and real-time fraud detection. FIS has a strong global presence and serves a diverse customer base across various industries. The company's commitment to innovation and customer satisfaction has earned it a reputation as a trusted provider in the IoT Banking Financial Services Market. A key competitor in the IoT Banking Financial Services Market is Diebold Nixdorf. The company specializes in providing connected commerce solutions for financial institutions. Diebold Nixdorf offers a range of IoT-enabled products, including self-service kiosks, ATMs, and point-of-sale systems. The company has a strong focus on security and compliance, ensuring the safety and integrity of customer transactions. Diebold Nixdorf's extensive experience in the financial services industry and its commitment to delivering cutting-edge solutions have made it a formidable competitor in the IoT Banking Financial Services Market.
Key Companies in the IoT Banking Financial Services Market Include:
- Uber
- Bank of America
- Citigroup
- WeBank
- Starling Bank
- Revolut
- Airbnb
- PayPal Holdings
- Monzo Bank
- Wells Fargo
- American Express
- JPMorgan Chase
- Mastercard
- Visa
- MYbank
IoT Banking Financial Services Industry Developments
Increased adoption of IoT devices: Financial institutions are increasingly deploying IoT devices to enhance customer service, automate processes, and improve security. Growing demand for real-time data: IoT devices generate vast amounts of real-time data, which can be used by banks to gain insights into customer behavior and make better decisions. The emergence of new technologies: The advent of technologies such as artificial intelligence (AI) and machine learning (ML) is enabling banks to develop more sophisticated IoT solutions. Regulatory changes: Governments worldwide are implementing regulations to ensure the secure and responsible use of IoT devices in the financial sector. Strategic partnerships: Banks are partnering with technology providers to develop and implement innovative IoT solutions. These trends are expected to drive the growth of the IoT Banking Financial Services Market in the coming years.
IoT Banking Financial Services Market Segmentation Insights
IoT Banking Financial Services Market Offering Outlook
- Hardware
- Software
- Services
IoT Banking Financial Services Market Business Function Outlook
- Customer Onboarding
- Payments
- Transaction Processing
- Risk Management
- Wealth Management
IoT Banking Financial Services Market Deployment Type Outlook
- On-premises
- Cloud-based
- Hybrid
IoT Banking Financial Services Market Organization Size Outlook
- Small and Medium-sized Enterprises (SMEs)
- Large Enterprises
IoT Banking Financial Services Market Vertical Outlook
- Retail Banking
- Commercial Banking
- Investment Banking
- Insurance
IoT Banking Financial Services Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
7.5 (USD Billion) |
| Market Size 2023 |
8.54 (USD Billion) |
| Market Size 2032 |
12.75 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
6.0% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Uber, Bank of America, Citigroup, WeBank, Starling Bank, Revolut, Airbnb, PayPal Holdings, Monzo Bank, Wells Fargo, American Express, JPMorgan Chase, Mastercard, Visa, MYbank |
| Segments Covered |
Offering, Business Function, Deployment Type, Organization Size, Vertical, Regional |
| Key Market Opportunities |
Enhanced financial services with IoT devices.Personalized customer experiences.Increased operational efficiency and cost reduction.Improved risk management and fraud detection.New revenue streams through value-added services. |
| Key Market Dynamics |
Rising demand for personalized banking experiences.Increasing adoption of IoT devices in the banking sector.Growing need for security and data protection.Integration of IoT with blockchain technology.Emergence of new business models and revenue streams. |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Iot Banking Financial Services Market is expected to reach a valuation of USD 8.54 billion in 2023.
The Iot Banking Financial Services Market is projected to reach a valuation of USD 12.75 billion by 2032, exhibiting a CAGR of 6.0% from 2024 to 2032.
North America is anticipated to dominate the Iot Banking Financial Services Market throughout the forecast period, owing to the presence of a large number of tech giants and early adoption of advanced technologies in the region.
The increasing adoption of IoT devices in the banking and financial services sector, coupled with the rising demand for enhanced customer experiences and operational efficiency, are the primary growth drivers of the Iot Banking Financial Services Market.
IoT finds diverse applications in the banking and financial services sector, including fraud detection and prevention, asset tracking, personalized customer service, and risk management.
Prominent players in the Iot Banking Financial Services Market include IBM, Microsoft, SAP, Oracle, and Cisco.
IoT is revolutionizing the banking and financial services industry by enabling real-time data collection and analysis, leading to improved decision-making, enhanced customer experiences, and reduced operational costs.
The Iot Banking Financial Services Market faces challenges such as security concerns, data privacy issues, and the need for skilled professionals to implement and manage IoT solutions.
The growing adoption of cloud computing, the increasing demand for mobile banking services, and the emergence of new technologies such as blockchain and artificial intelligence present significant growth opportunities for the Iot Banking Financial Services Market.
Key trends shaping the Iot Banking Financial Services Market include the integration of IoT with other emerging technologies, the focus on customer-centric solutions, and the adoption of IoT for regulatory compliance.
