- The market size stood at $17.85 billion in 2018.
- The increasing investment of banks and financial institutions in IoT technologies will help in growth of the market in the future
The global internet of things (IoT) in banking, financial services, and insurance (BFSI) market is predicted to reach $116.27 billion by 2026. It is expected to grow at a CAGR of 26.5 per cent during the forecast period according to a report by Fortune Business Insights titled, “Internet of Things (IoT) in Banking, Financial Services, and Insurance (BFSI) Market Size, Share & Industry Analysis, By Component, By Application and Regional Forecast, 2019-2026”. The market size stood at $ 17.85 billion in 2018.
Monitoring financial products and services
The increasing investment of banks and financial institutions in IoT technologies will help in growth of the market in the future. According to a study conducted by Tata Consultancy Services, financial institutions spend an average IoT budget of $117.4 million, which is 0.4 per cent of the revenue. The study also showed that some banks and financial institutes spent around $153.5 million in 2018. It also said that a large amount of their IoT budget (32 per cent in 2015 and 29 per cent by 2020) will account for monitoring financial products and services.
34 per cent of IoT budget to track customers
Financial institutes will plan to allocate 34 per cent of their IoT budget to track customers by 2020. Some reasons for the growth in this sector are the expanding use of e-wallets service, virtual assistants, self-assisted services and highly authenticated security systems to secure funds from cyber-attacks. The rising demand for banking suite applications will also help to increase the demand for IoT solutions in the BFSI industry. The increasing implementation of IoT software in banking applications will also help in growth.
As per the report, the increasing deployment of the cloud of things platform in IoT devices will boost the growth of the market. The rising demand for IoT solutions in BFSI will also aid the growth of the market.