IoT in BFSI Market to reach USD 116.27 billion by 2026
The global internet of things (IoT) in banking, financial services, and insurance (BFSI) market is predicted to reach $116.27 billion by 2026, exhibiting a CAGR of 26.5% during the forecast period. The increasing investment of banks and financial institutions in IoT technologies will stimulate the growth of the market in the foreseeable future. According to the studies conducted by Tata consultancy services, financial institutions spend an average IoT budget of $117.4 million, which is 0.4% of the revenue.
The study also revealed that some banks and financial institutes spent around $153.5 million in 2018. A large amount of their IoT budget (32% in 2015 and 29% by 2020) will account for monitoring financial products and services. Also, the plan of financial institutes to allocate 30% of their IoT budget to track customers. This allocation is expected to increase to 34% by 2020. These trends are expected to create lucrative growth opportunities for the market in the forthcoming years.
According to the report, published by Fortune Business Insights, titled “Internet of Things (IoT) in Banking, Financial Services, and Insurance (BFSI) Market Size, Share & Industry Analysis, By Component (Solutions and Services), By Application (Customer Experience Management, Security, Monitoring, Data Management and Others (Payment Management, etc.), and Regional Forecast, 2019-2026” the market size stood at USD 17.85 billion in 2018. The report offers dynamic insights into all the preponderating trends of the internet of things (IoT) in banking, financial services, and insurance (BFSI) market. It provides an all-encompassing summary of all the segments and shares analytical statistics of the regions. It is contained after extensive research followed by profound analysis to aid companies, stakeholders, financers, and potential investors. It is designed to provide a proper depiction of the market size. Besides, it also includes the latest advancement and development, product launches, acquisitions, collaborations & partnerships, and others.
Advancement in Online Banking Applications to Spur Demand for IoT Solutions
The increasing improvement and growing awareness regarding the benefits of online banking applications is expected to boost the internet of things (IoT) in the BFSI trend. The expanding use of E-wallets service, virtual assistants, self-assisted services and highly authenticated security systems to secure funds from cyber-attacks will further boost the IoT in BFSI market trends during the forecast period. Furthermore, the increasing focus of key players towards strategic partnerships and acquisitions to develop banking applications for end-users will facilitate the IoT in BFSI market growth in the foreseeable future.
For instance, in May 2018, Hero Electronix acquired Zenatix to develop banking applications for BFSI, automotive and retail industry. Also, the rising demand for banking suite applications is expected to fuel the demand for IoT solutions in the BFSI industry. The increasing implementation of IoT software in banking applications as it helps to collect facts, information, and usage capability of users with the help of surveys and feedback and further analyze customer’s behaviors and make enhanced decisions will also favor the growth of the market.
Implementation of Cloud of Things in IoT Platforms to Create Growth Opportunities
The increasing deployment of the cloud of things platform in IoT devices will favor the growth of the market. The rising demand for IoT solutions in BFSI will also aid the healthy growth of the market. The advantages such as analyzation and prediction of frauds and risk related to debit and credit card transactions will fuel demand among banks and financial institutions for the implementation of IoT technology-based on cloud services. Increasing investment and collaboration initiatives of key players to offer cloud services to banking organizations will support the internet of things (IoT) in BFSI market share. For instance, in July 2019, Deutsche Telekom completed a partnership with Software AG to develop and offer a cloud of things platform and expand its presence across the U.S, Germany, and other European countries.
Moreover, rising concerns regarding security threats will aid the adoption of IoT security solutions, which, in turn, will encourage the growth of the market. For instance, Attila Security developed GoSilent to identify and mitigate online cyber-attacks. GoSilent helps to secure all the network endpoints including servers, mobile devices, printer, scanners, laptops, desktops, and other peripheral devices