Banks are growing their IoT ecosystem. Source: Shutterstock

Bankers and insurers find IoT especially useful — new study

MANUFACTURERS aren’t the only ones using the Internet of Things (IoT) to take their business to the next level.

Bankers and insurance agents too are making long strides to transform the industry with the help of IoT solutions.

Whether consumers want to hook up their payments wallet with their smartwatch or have their portfolios displayed on their connected car’s windscreens while they’re driven to work, there’s plenty of opportunities in the market in Asia.

According to a new study by ReportsnReports, the global IoT in banking and financial services market size is expected to grow from US$249.4 million in 2018 to US$2,030.1 million by 2023, at a CAGR of 52.1 percent during the forecast period.

The convergence of operational and information technology and increasing use of IoT devices in product, application, and premises monitoring for connected banking are some of the factors driving the IoT in Banking and Financial Services market.

Increasing global investments in IoT and focus on services with real-time data flow are the main growth opportunities in the IoT in Banking and Financial Services market.

However, data protection and privacy concerns, and lack of standards for interconnectivity and interoperability are anticipated to be the major restraining factor for the growth of the market.

According to the study, the Asia Pacific (APAC) region is expected to grow at the highest rate in the global IoT in the banking and financial services market during the forecast period.

Experts believe this growth is due to the dynamic adoption of new technologies and aggressive initiatives to upsurge IoT ecosystem for the adoption of cutting-edge technologies.

Europe is expected to record the second highest growth rate in the global IoT in banking and financial services market.

The insurance end-user segment is expected to grow at the fastest rate, as IoT helps insurance companies in more effectively determining insurance prices and providing services that keep people and their assets safe.

IoT devices, such as smart devices and phones, can use accelerometers, gyroscopes, GPS, and sensors to provide data on consumers.

This usage pattern can be further used by insurance companies to provide usage-based insurance solutions.