Chris Skinner's blog

Shaping the future of finance

How Big Is the Internet of Things for Financial Institutions?

Chris Skinner Author Avatar
by
IoT

I just got pinged some more research from Deloitte, who have produced a fascinating report about the size of the market for the Internet of Things (IoT).  Here's the management summary and you can download the whole report here if you want.

IoT

Financial services have long trafficked in the intangible, from counterparty risk and online bill payment to things that used to be tangible but increasingly are not any longer, such as stock certificates and even money itself. So all the talk about the Internet of Things (IoT)—a suite of technologies and applications that provide information about, well, things—might not seem directly relevant to the way financial services institutions (FSIs) do business. But the IoT may be as broadly transformational to the financial services industry as the Internet itself, and leaders should make an effort to recognize the opportunities and challenges it presents for the financial sector as well as for industries with which FSIs work closely. Notwithstanding the inevitable hype, many industries see great promise in IoT applications: Analysts and technology providers forecast added economic value of anywhere from $300 billion to $15 trillion by this decade’s end.1 Few analysts seem to expect anything but a transformative effect on just about every dimension of economic activity by 2020. The

IoT—based on the concept of physical objects being able to utilize the Internet backbone to communicate data about their condition, position, or other attributes—is likely going to matter a great deal. (For an overview, see Deloitte University Press’s “Internet of Things” collection of articles.2) And FSIs can be active participants in this transformation. Indeed, FSI leaders can easily imagine the potential benefits accruing from having more comprehensive, real-time data about their own or their clients’ physical assets. Some use cases have already proven themselves: Applications such as auto insurance telematics and “smart” commercial real estate building-management systems offer clear IoT examples of new products or changed processes. Our aim in this report is to go a step further by exploring the IoT’s potential impacts on the financial services industry when those effects are hazier. We also aim to help FSI professionals such as claims administrators, portfolio managers, loan officers, and leasing agents understand how IoT applications may change their jobs in the coming years.

UncategorizedCategories
Chris Skinner Author Avatar

Chris M Skinner

Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...

What is the future?

Learn more

Learn more about Chris

About Chris Skinner

The Past, Present And Future Of Banking, Finance And Technology

Fintech expert Chris Skinner: countries need digital transformation to remain competitive

Join me on Linkedin

Follow Me on X!

Hire Chris Skinner for dinners, workshops and more

Learn directly from from one of the most influential people in technology, gain insights from the world's most innovative companies, and build a global network.

Chris’s latest book

Chris Skinner’s ‘Digital For Good’ Book Launch Event – CFTE

Top 50 Global Thought Leaders and Influencers on FinTech 2023

Chris Skinner
Commentator, CEO of The Finanser and best-selling author at The Finanser

Thinkers360 Thought Leader

Contact Me

Global Awards

Lifetime Achievement Award

Global 100 - 2024 Winner

Chris Skinner - Financial Markets Advisor of the Year - The Finanser - UK 2023

Best Financial Markets Advisor of the Year 2023

30 Best Regtech Blogs and Websites 2023

Kids creating the future bank | TEDxAthens

Captain Cake and the Candy Crew

Captain Cake Winner of a Golden Mom’s Choice Award

TWO-TIME WINNER OF A MOM’S CHOICE GOLD AWARD!

Alex at the Financial Services

Gaping Void's Hugh MacLeod worked with the Finanser