Internet of Things (IoT) in Financial Services - Thematic Intelligence
Summary
This report takes an in-depth look at look at the impact of the Internet of Things (IoT) across the financial services sector. It examines the value chain across the IoT technology stack and provides market size and growth forecasts. It explores the challenges faced by the financial services industry and how IoT can be deployed to solve them. The report also examines the key companies within this theme, including relevant case study examples of IoT implementations.
The Internet of Things (IoT) describes the use of connected sensors and actuators to control and monitor the environment, the things that move within it, and the people that act within it. The primary driving force behind the adoption of IoT in financial services has been the development of consumer electronics devices by Big Tech companies like Apple, Google, and Samsung. Financial services companies can embed applications such as payment gateways and health-tracking apps into the interfaces of these devices and gain valuable insights from the data they collect. GlobalData estimates that the total IoT market across the financial services sector will be worth $65.4 billion in 2027 - up from $23.6 billion in 2019.
Scope
- Interactions between customers and connected devices yield two primary business avenues for financial services companies. The first is the ability to embed products and services into user interfaces and applications, ultimately boosting revenue. The second is the treasure trove of customer insights that can be extracted from user-generated data and the subsequent opportunities for more nuanced personalization.
- Software will be the largest IoT revenue segment in the financial services sector, accounting for 34.9% of revenue in 2027.
- US companies dominate IoT-related patent publications in the financial services sector, filing over twice as many patents as China from January 2003 to September 2023.
- Access market size and growth forecasts for IoT in financial services.
- Identify IoT leaders and laggards across payments, retail banking, life insurance, and non-life insurance.
- Understand the key challenges facing the financial services sector, and how IoT addresses these challenges.
- Access primary research case study examples of IoT vendors and investment in the financial services sector.
- Understand IoT adoption using alternative datasets and analysis showing M&A activity, mentions of IoT technologies in company filings, and IoT hiring trends in the financial services sector.
- Executive Summary
- Players
- Financial Services Challenges
- Impact Assessment
- The impact of IoT in banking & payments
- Payments
- Retail banking
- Wealth management
- The impact of IoT in insurance
- Life insurance
- Non-life insurance
- The impact of IoT on financial services challenges
- How IoT can help address the challenge of personalization
- How IoT can help address the challenge of ESG
- How IoT exacerbates the challenge of data compliance
- How IoT exacerbates the challenge of cybersecurity and fraud risk
- How IoT can help address the challenge of financial inclusion
- Case Studies
- JPMorgan Chase’s Onyx launches IoT in space
- FloodFlash uses IoT to collect parametric flood data
- The Helium Network: cryptocurrency in exchange for deploying IoT hotspots
- Market Size and Growth Forecasts
- Signals
- Deals
- Patent trends
- Company filing trends
- Hiring trends
- IoT Value Chain
- Physical layer
- Connected things
- Cameras and lenses
- Sensors and microcontrollers
- Microprocessors
- Connectivity layer
- Edge infrastructure
- Cloud infrastructure
- Networking equipment
- Telecom networks
- Data layer
- Data integration
- Data aggregation
- Data processing
- Data storage
- Data validation
- Data governance and security
- App layer
- Apps
- Platforms
- Services layer
- Integration services
- Consulting services
- Companies
- Leading IoT adopters in financial services
- Specialist IoT vendors in financial services
- Sector Scorecard
- Payments sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Retail banking sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Life insurance sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Non-life insurance sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Glossary
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- About GlobalData
- Contact Us
- List of Tables
- Table 1: Key challenges currently facing the financial services sector
- Table 2: Key M&A transactions associated with the IoT theme in the financial services sector since January 2015
- Table 3: Leading IoT adopters in financial services
- Table 4: Specialist IoT vendors in financial services
- Table 5: Glossary
- Table 6: GlobalData reports
- List of Figures
- Figure 1: Key players in IoT
- Figure 2: Almost half of poll respondents believe that IoT is tangibly disrupting their industry
- Figure 3: Financial services companies should focus investment on the app and data layers
- Figure 4: Payments has adopted the most IoT devices to date
- Figure 5: More and more devices are being payment-enabled
- Figure 6: IoT has become a key enabler for both life and non-life insurance companies
- Figure 7: Medical IoT devices can track key health metrics and inform life insurance policy prices
- Figure 8: IoT enables non-life insurers to gather real-time data and enhance risk assessment and pricing models
- Figure 9: Apple’s iBeacon provides location-based information and services to iOS devices
- Figure 10: Four Twenty Seven’s physical climate risk app
- Figure 11: Wells Fargo’s plush pony toy
- Figure 12: Pay-outs are triggered once water levels reach a pre-determined flood depth
- Figure 13: The Helium Network hotspot
- Figure 14: A decline in the USD price of HNT led to limited growth of the Helium Network
- Figure 15: IoT revenue across the financial services sector will grow at a CAGR of 13.6% between 2019 and 2027
- Figure 16: The number of IoT-related M&As across the financial services sector reached a peak of 106 in 2018
- Figure 17: IoT-related patents in the financial services sector grew between 2010 and 2020
- Figure 18: The US leads IoT-related patent filings across the financial services sector by a wide margin
- Figure 19: IoT-related filing mentions across the financial services sector peaked in 2021
- Figure 20: IoT-related job vacancies across the financial services sector increased from Q2 2020 to Q2 2022
- Figure 21: The IoT value chain
- Figure 22: The IoT value chain - Physical layer: leaders and challengers
- Figure 23: The IoT value chain - Connectivity layer: leaders and challengers
- Figure 24: The IoT value chain - Data layer: leaders and challengers
- Figure 25: The IoT value chain - App layer: leaders and challengers
- Figure 26: The IoT value chain - Services layer: leaders and challengers
- Figure 27: Leading adopters and specialist vendors of IoT across banking & payments and insurance
- Figure 28: Who does what in the payments space?
- Figure 29: Thematic screen - Payments sector scorecard
- Figure 30: Valuation screen - Payments sector scorecard
- Figure 31: Risk screen - Payments sector scorecard
- Figure 32: Who does what in the retail banking space?
- Figure 33: Thematic screen - Retail banking sector scorecard
- Figure 34: Valuation screen - Retail banking sector scorecard
- Figure 35: Risk screen - Retail banking sector scorecard
- Figure 36: Who does what in the life insurance space?
- Figure 37: Thematic screen - Life insurance sector scorecard
- Figure 38: Valuation screen - Life insurance sector scorecard
- Figure 39: Risk screen - Life insurance sector scorecard
- Figure 40: Who does what in the non-life insurance space?
- Figure 41: Thematic screen - Non-life insurance sector scorecard
- Figure 42: Valuation screen - Non-life insurance sector scorecard
- Figure 43: Risk screen - Non-life insurance sector scorecard
- Figure 44: Our five-step approach for generating a sector scorecard
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