Home / Uncategorized / How Big Is the Internet of Things for Financial Institutions?

How Big Is the Internet of Things for Financial Institutions?

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.

About Chris M Skinner

Chris M Skinner

Chris Skinner is best known as an independent commentator on the financial markets through his blog, the Finanser.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…

Check Also

Financial services of the future will be open sourced and real-time

I recently  presented in Miami and BBVA were kind enough to summarise what I said …

  • Steve

    Aren’t banks doing this already via different media? For example a SMS when your ac balance falls below £x; or an app alerts you that the FX market is near the position you wanted?
    There’s lots more to do, such as tracking your international payment like you can your pizza delivery I admit, but in principle, Banks appear to get it, don’t they?