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Internet of Things (IoT) in Financial Services - Thematic Intelligence

Publisher GlobalData
Published Oct 17, 2023
Length 82 Pages
SKU # GBDT18294996

Description

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.
Reasons to Buy
  • 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.

Table of Contents

82 Pages
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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