IoT In Banking And Financial Services Industry

The global IoT in banking and financial services market size was estimated at USD 57.55 billion in 2023 and is expected to grow at a CAGR of 11.9% from 2024 to 2030. The rise of IoT technology is increasingly shaping the growth of banks and financial services by revolutionizing customer interactions. IoT devices provide real-time insights into customer behaviors and preferences, leading to highly personalized and seamless service experiences. For instance, IoT-enabled wearables notify customers about unusual transactions or upcoming bill payments, transforming traditional service models. This trend towards more tailored interactions boosts customer satisfaction and drives market expansion in IoT for banking and financial services.

Gather more insights about the market drivers, restrains and growth of the Global IoT In Banking And Financial Services market

Moreover, IoT technology helps financial institutions update operations and reduce costs through automation and real-time monitoring. IoT sensors can track asset conditions, manage energy usage, and optimize branch operations. Automated processes, such as smart ATMs and connected security systems, reduce the need for manual intervention and enhance service reliability. In addition, IoT-driven data analytics provides insights into process improvements and resource allocation. These efficiency gains translate into cost savings and higher profitability for banks and financial services providers, driving market growth.

The IoT offers advanced security solutions that protect financial institutions and their customers from cyber threats and fraud. IoT devices, such as connected cameras and biometric sensors, enhance physical security at bank branches and ATMs. Moreover, IoT-enabled systems can monitor transactions and detect unusual patterns in real time, triggering immediate alerts for potential fraud. Integrating IoT with artificial intelligence (AI) further enhances predictive analytics and risk assessment. Improved security measures build customer trust and safeguard financial assets, driving market growth.

Key IoT In Banking And Financial Services Company Insights

Some of the key players operating in the market are IBM Corporation, Microsoft Corporation, and SAP SE.

  • IBM Corporation has evolved into a multinational technology and consulting company. Known for its significant contributions to computing, IBM plays a pivotal role in developing hardware, software, and cloud-based services.
  • Microsoft Corporation is a global technology company renowned for its Windows operating systems, Office productivity suite, and, more recently, cloud computing services through Azure. It specializes in the development, manufacturing, licensing, support, and sales of computer software, consumer electronics, and personal computers and services.

Software AG and Vodafone Group Plc, among others, are some of the emerging market participants.

  • Software AG, founded in Germany, specializes in enterprise software for business process improvement. Its product portfolio includes solutions for integration, IoT, process management, analytics, and database management, among others.
  • Vodafone Group is a British multinational telecommunications company. As one of the world's leading telecom operators, it provides a range of services, including voice, messaging, data, and fixed communications. Vodafone has mobile operations in numerous countries, partner networks in additional countries, and fixed broadband operations in select markets, serving millions of customers globally.

Key IoT In Banking And Financial Services Companies:

The following are the leading companies in the iot in banking and financial services market. These companies collectively hold the largest market share and dictate industry trends.

  • IBM Corporation
  • Microsoft Corporation
  • SAP SE
  • Oracle Corporation
  • Cisco Systems, Inc.
  • Capgemini SE
  • Accenture PLC
  • Software AG
  • HCLTech Ltd.
  • Vodafone Group

Recent Developments

  • In September 2023, HCLTech Ltd. and ANZ, one of the four major banks in Australia and the most significant banking group in New Zealand and the Pacific, extended their partnership through a new initiative aimed at revolutionizing ANZ’s digital experience for employees in 33 countries. HCLTech Ltd. utilized cutting-edge technologies such as extended reality, generative AI, and IoT-enabled workspaces to facilitate immersive, sustainable, and inclusive environments for enterprises.
  • In August 2022, Accenture PLC acquired The Stable, a specialized agency dedicated to assisting consumer brands in developing and managing their digital commerce platforms. Moreover, The Stable helps brands optimize their brand presence and sales outcomes across major retailers in North America. This acquisition highlights Accenture PLC's ongoing commitment to investing in commerce solutions to facilitate client growth and ensure their ongoing relevancy in the market.
  • In May 2022, HCL Technologies UK Limited, a fully owned subsidiary of HCLTech Ltd., completed the acquisition of Confinale AG, a digital banking and wealth management consultancy firm based in Switzerland and an Avaloq Premium Implementation Partner. With this acquisition, HCLTech Ltd. expanded its global wealth management presence, focusing on Avaloq consulting, implementation, and management skills.

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