IoT in Banking and Financial Services Market is expected to grow at a CAGR of 11.15% through 2030F
The
Global IoT in Banking and Financial Services Market is expected to be led by
the insurance segment, driven by rapid adoption of connected devices and data-driven
solutions, during the forecast period 2026-2030F
According to TechSci Research report, “IoT in Banking and Financial
Services Market - Global Industry Size, Share, Trends, Competition Forecast
& Opportunities, 2030F, The Global IoT in Banking and Financial
Services Market was valued at USD 58.56 billion in 2024 and is expected to
reach USD 110.40 billion by 2030 with a CAGR of 11.15% through 2030.
Banking
institutions are under immense pressure to meet growing regulatory obligations,
from Know Your Customer (KYC) mandates to real-time anti-money laundering (AML)
tracking. IoT devices play a vital role in automating compliance processes.
Devices such as smart ID scanners, biometric checkpoints, and real-time
location trackers generate immutable data logs that serve as instant audit
trails. These logs can be time-stamped, geo-verified, and securely transmitted,
creating a continuous chain of evidence that regulators can independently
validate. This reduces the reliance on manual compliance checks and lowers the
risk of errors or fraud.
IoT-powered
compliance platforms can integrate seamlessly with core banking systems to
automate alerts, policy enforcement, and exception handling. For example, if a
high-value transaction is initiated without biometric confirmation on a
registered device, the system can delay processing and flag it for review. Not
only does this improve security, but it also helps institutions avoid costly
fines or reputational damage from regulatory breaches. By embedding governance
into every transaction and customer interaction, IoT ensures that compliance
becomes proactive rather than reactive. Over a three-month audit across two
banks, IoT-integrated identity systems automated approximately 4,100 Know Your
Customer (KYC) verifications. These systems significantly reduced operational
load by eliminating the need for manual document review in over 2,700 cases.
The results highlight the efficiency and accuracy of IoT-based solutions in
streamlining compliance processes and enhancing the speed of customer
onboarding.
The
integration of wearable devices into the banking ecosystem represents a rapidly
growing trend in the global Internet of Things in banking and financial
services market, enabling real-time interaction and personalization of
financial services. Devices such as smartwatches and fitness bands are being
utilized by banks to offer on-the-go access to banking services including
balance notifications, transaction alerts, and voice-enabled fund transfers.
This development not only enhances convenience but also provides institutions
with new avenues to gather contextual data, such as physical activity,
location, and user interaction patterns.
Such data
allows for a more nuanced understanding of customer preferences and financial
behaviors, enabling banks to deliver highly targeted marketing campaigns and
financial planning advice. Moreover, biometric features embedded in wearable
devices add an extra layer of security to transactions, combining user
convenience with fraud resistance. The rise of wearable banking is reshaping
customer engagement strategies and is expected to become a cornerstone in the
delivery of hyper-personalized banking services in the coming years.
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Based on End Use, Insurance is emerging as the
fastest-growing segment in the Global IoT in Banking and Financial Services
Market, because of its ability to leverage connected devices for better risk
assessment and operational efficiency. Insurance companies are increasingly
adopting IoT technologies like telematics, smart home sensors, and wearables to
gather real-time data on customer behavior, property conditions, and health
metrics. This data enables more accurate underwriting, dynamic pricing, and
proactive risk management, leading to customized insurance products and
improved customer satisfaction.
The
use of IoT in insurance extends to simplifying claims processes and reducing
fraud. For instance, telematics in auto insurance allows companies to monitor
driving habits, assess accident data, and expedite claims with greater
transparency. Smart home devices detect risks like fire or water leaks,
enabling insurers to respond quickly and minimize losses. These innovations not
only improve customer experience but also lower operational costs by automating
traditionally manual processes and minimizing false claims.
IoT-driven
analytics empower insurers to offer highly personalized policies and
value-added services. By continuously collecting and analyzing data, insurers
can identify emerging risks, anticipate customer needs, and provide preventive
solutions. This shift towards data-driven, customer-centric insurance models is
fueling the rapid growth of the insurance segment in the Global IoT in Banking
and Financial Services Market, positioning it as a key area for innovation and
expansion in the foreseeable future.
Asia
Pacific is rapidly emerging as the fastest-growing region in the Global IoT in
Banking and Financial Services Market, driven by increasing digital adoption,
rising smartphone penetration, and expanding internet connectivity. Countries
like China, India, Japan, and South Korea are investing heavily in smart
banking infrastructure and financial technologies. Financial institutions in
the region are leveraging IoT to enhance customer experience, enable real-time
transaction monitoring, automate branch operations, and strengthen fraud
detection systems. The growth is further supported by favorable government
initiatives promoting digital banking and fintech innovation.
The
rise of 5G networks and cloud computing is enabling seamless integration of IoT
devices across banking operations. As consumer demand for personalized and
efficient banking grows, Asia Pacific is poised to lead the next wave of
innovation and investment in IoT-enabled financial services, transforming how
banking is delivered and experienced.
Key
market players in the IoT in Banking and Financial Services Market are: -
- Cisco
Systems, Inc.
- Microsoft
Corporation
- Oracle
Corporation
- IBM
Corporation
- Amazon.com,
Inc.
- Infosys
Limited
- Accenture
plc
- SAP
SE
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“The
Global IoT in Banking and Financial Services market is expected to grow
significantly in the coming years, driven by rising demand for real-time data,
enhanced customer experience, and improved operational efficiency. Financial
institutions are adopting IoT for smart ATMs, personalized services, fraud
detection, and asset tracking. Integration with AI and blockchain is further
boosting innovation and security. As digital transformation accelerates,
especially in emerging economies, the adoption of IoT solutions will expand.
Regulatory support, advancements in 5G, and increasing smartphone usage will
also fuel market growth, making IoT a key enabler in reshaping the future of
financial services.” said Mr. Karan Chechi, Research Director of TechSci
Research, a research-based global management consulting firm.
“IoT in Banking and
Financial Services Market – Global Industry Size, Share, Trends, Opportunity,
and Forecast, By Component (Hardware, Software, Services), By Application
(Security, Customer Experience Management, Monitoring, Data Management,
Others), By End Use (Banking, Insurance, Others), By Region, By Competition, 2020-2030F” has evaluated the future growth
potential of IoT in Banking and Financial Services Market and provides
statistics & information on market size, structure, and future market
growth. The report intends to provide cutting-edge market intelligence and help
decision makers take sound investment decisions. Besides the report also
identifies and analyzes the emerging trends along with essential drivers,
challenges, and opportunities in IoT in Banking and Financial Services Market.
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