Internet of Things in Banking Market Size

Internet of Things in Banking Market Analysis

The Internet of things in the banking market is expected to grow at a CAGR of 18.58% over the forecast period. Today's banking customers are known to be less loyal, more demanding, and increasingly comfortable with the entire digital banking experience, from self-service to automated wealth advisory. Moreover, the cost, customer expectations, traditional competitors, and FinTechs represent a significant threat to the banks. Thus, the focus has turned to offering new and improved experiences and higher value for customers and employees, competing with rising expectations. One of the technologies being embraced by banks is IoT. Amid a massive digital disruption, banks are exploring how IoT can help design products that adhere to customer demands. Some of the world's largest banks are re-organizing their front office due to an increase in the prioritization of customer-centricity.

• One of the essential benefits of IoT in the banking industry is providing easy-to-access services to credit card and debit card customers. Banks can analyze the usage rate of ATM kiosks in specific areas and alter the installation of ATMs depending on usage volumes. Along with ATMs, banks can use IoT data to bring on-demand services closer to customers by providing kiosks and increasing the accessibility of service to customers. The customer data available through IoT can help banks identify their customers' business needs and value chains and gain customer insights. Customer information can help banks contribute to providing value-added services, financial assistance, and customized products to ensure a favorable situation for both parties.
• The market has a huge potential when it comes to retail banking. Banking via smart speakers provides customers with the convenience of issuing voice instructions rather than physically looking at a mobile device.
• IoT provides the BFSI industry with a variety of digitalization advantages, including a 360-degree client perspective, improved financial security, fraud detection, cutting-edge insurance tactics, and more. Innovations made possible by the Internet of Things assist banking and financial organizations in exceeding client expectations and providing superior customer service.
• Some banks have started using beacons to send customized offers to customers' smartphones as soon as they enter the branch. Some ATMs now have live-stream video support that allows customers to speak to tellers if they require additional assistance. Banks use IoT and other banking applications to resolve the conflict seen in traditional branch banking due to mobile banking. For instance, biometric sensors can be utilized to garner user data when they enter the bank and relay it to the primary system.
• To contain the spread of COVID-19, the majority of bank employees across the world are being asked to work from home. COVID-19 is also challenging the traditional banking habits of customers. The World Health Organization (WHO) has advised people to use contactless payment and avoid handling banknotes as much as possible. This is because COVID-19 may continue to live on a note for days, accelerating the spread of this disease. By implementing digitized and remote customer transactions, banks can ensure that everyday and exceptional processes are likely to be carried out with limited disruption. This represents an increasing adoption of IoT in banking in the future.