IoT in banking, financial services market worth US$2,030 mn by 2023: Report

According to a new research report by MarketsandMarkets, the market size of Internet of Things (IoT) in the banking and financial services sector is expected to grow from US$ 249.4 million in 2018 to US$ 2,030.1 million by 2023, at a CAGR of 52.1 per cent during the forecast period. Major driving forces of the IoT in banking and financial services market are convergence of operational and information technology and increasing use of IoT devices in product, application, and premises monitoring for connected banking.

The services segment is expected to be the fastest-growing component in the IoT in banking and financial services market during the forecast period. The services segment comprises professional services and managed services. The professional services segment has been further categorised into integration and deployment, business consulting, and support and maintenance.

Support and maintenance services deliver application and maintenance services and IT solutions, which further offer secured high-performance platforms for transforming critical applications and fulfilling changing business needs. Once the IoT devices are deployed in organisations, it is crucial that these devices are well integrated with the existing enterprise systems. Support and maintenance service providers deliver round-the-clock support services to resolve issues.

The insurance segment is expected to hold the largest market share in the IoT in banking and financial services market during the forecast period.

IoT helps the insurance companies in more effectively determining insurance prices and providing services that keep people and their assets safe. IoT devices, such as smart devices and phones, can use accelerometers, gyroscopes, GPS, and sensors to provide data on consumers. This usage pattern can be further used by insurance companies to provide UBI solutions. For instance, with the emergence of telematics, cars are now able to transmit drivers’ behaviour data back to the car insurance companies, so that they can assess drivers’ risks and premiums accordingly.

APAC is expected to have the largest market share in the IoT in Banking and Financial Services Market during the forecast period.

APAC is one of the largest contributors to the IoT in banking and financial services. The increasing adoption of IoT solutions to cater to the growing demand for business services in the banking and financial services vertical and technological advancements are the major factors driving the APAC market growth.

Major APAC countries, such as Singapore, Japan, and India are working to adopt the IoT technology. The Infocomm Development Authority of Singapore (IDA) and the Information Technology Standards Committee (ITSC) have started an initiative called SPRING Singapore, which encourages industry participants to make new developments and investments in the IoT sector.

According to a TCS report, 55 per cent of APAC organisations, including financial institutions, have adopted the IoT-enabled agile business model. Moreover, the report states that APAC companies are more likely to use IoT technology solutions to automatically resupply their end-customers with connected solutions, for which 26 per cent of organisations have already made changes to their business model.

Major vendors in the APAC IoT in banking and financial services market include Infosys (India), Allerin Technologies (India), Tibbo Systems (China), SunTec (India), Ranosys Technologies (Singapore), Paragyte Technologies (India), and Colan Infotech (India).

bankingConnected Bankingfinancial servicesInternet of thingsIOTMarketsandMarkets
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